Seniors in car insurance: This is how they avoid the expensive age surcharges

Seniors in car insurance: This is how they avoid the expensive age surcharges

Older people, especially retirees, often face higher costs for their car insurance. This is because insurance companies take the age of the insured into account and allow certain age groups to pay higher premiums due to higher accident statistics. According to the General Association of Insurers (GDV), the frequency of claims increases with increasing age, which leads to higher premiums.

A study by Stiftung Warentest showed that 80-year-old insured people pay on average twice as much for their vehicle insurance as 55-year-olds. Drivers who are already 65 years old have to pay 16 percent higher premiums compared to insured people who are ten years younger, according to the comparison portal Verivox.

Although some may view age-based surcharges as discrimination, insurance companies emphasize that they are based on statistical data. An investigation by the financial regulator BaFin in 2020 confirmed that age-dependent tariff classification cannot be viewed as impermissible discrimination against older drivers.

Experts recommend that seniors review their existing insurance and, if necessary, switch to a cheaper provider. Another tip is to insure the car as a second car through a child to avoid the age surcharge. This allows pensioners to save up to 50 percent on car insurance costs. However, it is important to provide truthful information when asking the insurance company so as not to risk insurance coverage.

Alternatively, seniors can check the kilometers driven per year and adjust them if necessary in order to benefit from a discount in a higher no-claims class. This can help to at least partially reduce contributions and reduce the burden on pensioners.