Car insurance in old age: discrimination or justified? A financial expert explains it

Car insurance in old age: discrimination or justified? A financial expert explains it

According to a report by www.nordkurier.de, Huk-Coburg charges older drivers a significantly higher insurance premium than younger drivers. In a specific case, this meant that an 86-year-old policyholder had to pay three times more than his 62-year-old partner. The pensioner feels disadvantaged by this age discrimination and points out that, statistically, most people who cause accidents are between 18 and 24 years old.

Financial expert Stephan Tietz from the MV consumer advice center explains that age surcharges for vehicle insurance are common, sometimes from the age of 60. He advises seniors to compare offers from different insurers, as the damage balance represents a more precise basis for the premium amount than a flat age surcharge. The General Equal Treatment Act allows such differences as long as they are objectively justified. The General Association of Insurers argues that, according to data from the Federal Statistical Office, both younger and older drivers cause an increased number of accidents.

The insurers also emphasize that claims-free years lead to a no-claims bonus, which can mitigate the age surcharge. The tariff structure is based on recommendations from the GDV and, in addition to the no-claims discount, also takes into account regional and type-related criteria.

Given this information, it is safe to assume that age discrimination in auto insurance can have significant financial implications, particularly for older consumers. Seniors may have to pay significantly higher premiums even though they have driven without an accident for many years. This can lead to financial strain and limit mobility in old age. In addition, the practice of age premiums in car insurance raises ethical questions and could lead to public criticism of the industry.