Ageing population blamed for surge in pensioners’ car insurance bills

Britain’s ageing population blamed for spiralling insurance bills

Britain’s ageing population has been blamed for spiralling car insurance premiums for pensioners.

Elderly motorists face being taken off the road by rapidly rising bills, with renewal quotes jumping by hundreds of pounds.

Some have been denied insurance altogether, with premiums rising to record highs despite being among the “safest” drivers on the road.

It comes as insurers are to be grilled by MPs of the Treasury Committee on Wednesday. Representatives of the industry, as well as the financial regulator, the Financial Conduct Authority, are expected to be asked why there have been such large rises in insurance premiums and consumer dissatisfaction, following a surge in ombudsman complaints.

There are currently a record 6.19 million people aged 70 or over who hold full driving licences in Britain, up from just under four million a decade ago, according to RAC figures.

Insurers have targeted over 65s in particular with rising quotes for car premiums, which went up by 43pc between the start of 2023 and January this year, according to price comparison site Quotezone.

The figures show the average price of cover now stands at just under £479, up from £334 at the start of last year. Insurance quotes for all drivers in the UK increased by 21pc last year by comparison, data from market research firm Consumer Intelligence shows.

Some older drivers have complained that their premium costs have risen even higher, with one 90-year-old reader claiming their insurer declined to renew their cover.

Steve Gooding, director of the RAC Foundation, said that the number of older drivers on the road was “rising rapidly” and responsible for pushing up premiums across the age group .

He said that the “relative frailty of older drivers means they are more likely to be seriously hurt and once they get beyond their early 80s their risk of having a crash starts to rise again and this is probably reflected in their insurance premiums.”

“Many of these drivers will drive infrequently, if at all, and when they do take to the road they are amongst the safest people behind a wheel, not least because they tend to self-regulate and avoid situations – such as driving at night, in rush hour or on motorways – where they do not feel comfortable,” he said.

Dame Angela Eagle MP, a member of the Treasury Committee, said: “There’s all sorts of ways that customers can be treated quite badly in the background of rising insurance prices and a cost of living crisis.

“The issue is always a balance because insurance works by pricing risk. However, there is a big difference between people who are fit at the age 65 and people who aren’t.”

Brian Rollins, 85, from Wigan in Lancashire, told the Telegraph his car insurance premium renewal quote was almost treble what he was previously paying, up from £422 to £1,317.

Mr Rollins, who has been a member of the Institute for Advanced Drivers for 56 years and drives a 13-year-old Citroën C3 he says is worth less than £5,000, said: “They’ve given no reason whatsoever and there’s no reason that I can think of, certainly in terms of medical conditions, accidents, claims, just no explanation whatsoever.

“I have done a very quick Google search and I’ve found cover for £613, which seems to be from what I’ve heard the current expected increase – about 50pc – I think that’s fairly common with motor insurance premiums these days. If that’s the best that I can get then that’s what I will take and I’ll be happy with it.”

Mr Rollins mainly uses his car for local journeys, such as doing a weekly food shop, but says his life would be made much more difficult without a car.

“It would certainly be very difficult. We have a very good bus service, but that isn’t very useful when you’re visiting family or going shopping as we do a couple of times a week.”

He added: “Older drivers like me are probably doing less driving than others – they’ve retired from business so aren’t travelling to and from work. I’m certainly driving less mileage now than I ever used to do.”

An Association of British Insurers spokesman said: “Insurers are aware of the financial challenges customers are facing and are determined to keep motor insurance as competitively priced as possible.”

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