Age discrimination in car insurance: why do older and younger people pay more?

Younger and older people often struggle to get affordable car insurance. Young people pay a much higher premium, seniors from a certain age are even refused by certain car insurers. But are insurance companies prepared for the fact that the Dutch are getting older and staying more vital?

Some actions of insurers are hard to swallow. Suppose you are seventy years old and you have never caused any car damage. You get a letter from the car insurance company saying that the premium is going up because of your age. Out of irritation you will probably cancel your car insurance and switch to another insurer. Switching is possible, but not all insurers will accept you.

Influence of age on car insurance

Insurers use a higher premium or a maximum age for taking out a new car insurance policy as a risk consideration. According to figures from the Centre for Insurance Statistics, insurers cannot simply say that senior citizens are a greater risk. It turns out that elderly drivers between 66 and 75 years old do not claim more damages on their car insurance than drivers between 28 and 65 years old. If there is no justification for stricter conditions for senior citizens, one can say that there is age discrimination. Older people are less interesting for insurers, but that is no reason to charge higher premiums.