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Old age insurance uk car

Getting the best deal on your car insurance is predominately about shopping around, but there are subtle ways to make a big difference on your premium rates. One of the best is to play The Generation Game. Play it right and it is possible to bring down your premium considerably, but lose and you could end up paying up to 280 per cent more.

Getting the best deal on your car insurance is predominately about shopping around, but there are subtle ways to make a big difference on your premium rates. One of the best is to play The Generation Game. Play it right and it is possible to bring down your premium considerably, but lose and you could end up paying up to 280 per cent more.

And adding your son or daughter to your car insurance policy can send premiums soaring by nearly 300 per cent. Take a male driver of a 2,000cc Vectra who is 66, married, retired, and with more than 10 years of a no-claim track record. If he adds as second driver to his comprehensive insurance policy with a £100 excess, his 18-year-old son, who has held his licence for a year, on a policy with the RAC, the increase may be 280 per cent, or £303.26 to £1,152.31.

Others are less punishing. At Egg, the 66-year-old named driver pays £172.20, but by adding his young son he can expect to pay £615.30.

These Generation Game rules are less than surprising. RAC spokesperson Nina Arnott says: "Most older drivers would accept that if they add a younger driver they will pay more. Younger drivers are likely to increase the premium because they are statistically more likely to be prosecuted for speeding and are more likely to have an accident. The premium will reflect this."

But by adding an older driver, say over 40, younger drivers in their mid-twenties can chop their premiums considerably, simply by adding this more mature driver to their policy. If a young driver bought their policy from Axa they could reduce their costs by 12 per cent in some cases.

For example, a single employed female, aged 25, with two years of no-claim history, adds her father as a second driver on to the policy for her 1,400cc Polo. He is 66 and has more than 10 years of no-claim history and the policy offers comprehensive insurance with £100 excess. By using financial comparison website, Moneysupermarket.com, buying from Axa and adding Dad would bring the £428.07 annual premium to £376.17. At Nationwide £546 for the one named young driver would be cut to £513.45 by using paternal influence.

On this basis it looks easy to play to win, but the problem for generation gamers looking for the best deal is that not all providers operate the same rules as the likes of Axa and Nationwide.

Some insurers still increase premiums for added drivers, regardless of their experience or years of no claims. For example, budget provider Direct Choice ups premiums by almost 18 per cent in some cases for the privilege of naming another driver. Egg and Direct Line will also bump up premiums by about £50.

There is not much you can do about your age, gender or your postcode, short of moving house. These are the most important factors insurance companies use to determine your premiums. Your claims history is also vitally important.

But you can save up to 35 per cent on premiums simply by comparing quotes from different insurers, and the Association of British Insurers recommends that you compare at least five different companies to get the best deal.

Most insurers will hike their premiums from the second year you have your policy with them, so it pays to shop around when you are renewing it. About 60 per cent of us keep our policies with same insurer when we renew, meaning we accept higher premiums without looking for something cheaper.

The AA, which also acts as an insurance broker, recommends keeping your mileage down, which can make a difference. Drivers who cover less than 10,000 miles will pay far less than those who cover 30,000 a year.

Another major factor is the excess you agree to pay before the insurer kicks in to pick up the tab. The standard excess is £100, meaning you pay the first £100 of any claim, but increasing this to £300 or higher can knock hundreds of pounds off your rate. Your car does not does have to be powerful and sporty for premiums to rise; if you have an unusual or rare car, insurers will charge more because it will be more expensive to repair.

For younger drivers hit by high premiums there will always be the temptation by well-meaning parents to take out a policy in their names and have their child on the policy as a named driver when in they are the main driver. But parents who do this could be caught. Richard Mason, head of marketing at Moneysupermarket.com, warns: "We would always urge consumers to be honest with insurers. If your child is down on the policy as an occasional driver and the insurer finds out they are the main driver they will not pay out in the event of a claim."

Far better for the policy to be in the younger driver's name, enabling them to build their own no-claims track record which will bring down premiums substantially in a few years.

And if you are still faced with high premium, do not be tempted to take the offer of paying it in monthly instalments. "The typical interest rate charged on monthly instalments is 15 to 20 per cent," Mr Mason says. "If you don't have the money up front, there are cheaper ways of financing it. You could take out a credit card that offers 0 per cent interest for six months, and interest-free purchases, such as Morgan Stanley card. Or you could take out a loan; Cahoot, the online bank, offers 5.9 per cent on a loan of as low as £1,000."

'I had no idea I could save'

Jenny Smith is a 24-year-old student who saved herself £130 by adding her 44-year-old mother to the policy for her Mondeo estate.

Jenny, who lives in Eccles, Manchester, says: "I had no idea that I could save money this way until I chanced on it. On my own, the policy was much more expensive, but by adding mum, the price came right down. No one seems to realise this is how it can work, so I have been telling everyone.

The car Jenny drives was given to her by her mother, but when they investigated adding Jenny to her mother's policy, the premium soared by £240.

Jenny's policy was purchased online from Axa and she has enjoyed six years without a claim and her mother five years without a claim.


* Try adding an older driver to your policy;

* Pay your premium in one lump sum. The interest rates insurers charge on monthly installments can be very high;

* Get a good-quality alarm. Any Thatcham-approved system will score points with your insurer;

* Compare at least five insurers to make sure you get the best deal on the market. A broker, or a website such as Moneysupermarket, will help;

* Restrict your mileage;

* Shop around every time you renew your policy;

* Store your car in a garage or under cover, if possible.

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Pensioners with a perfect driving history, such as Mr Hall, are in a constant battle with insurers to fight rising premiums.

The situation made headlines recently when actress Sheila Hancock, 82, complained about a £1,400 premium rise that she blamed on age discrimination in the insurance industry.

More than car insurance windscreen repair kit

Sheila Hancock's £1,400 premium hike made the headlines last month

Despite a six-decade history of impeccable driving, the cost of Ms Hancock’s cover was increased from £873 a year to £2,246 by her insurer.

We investigated the story and spoke to campaigners who insist that “ageism in insurance” should be made illegal.

“Unjustified age discrimination is illegal in most other parts of day-to-day life in Britain. It should be illegal in the insurance industry too,” said Caroline Abrahams of Age UK, the charity and lobby group.

It’s also a demand being made by many of our readers. Following this newspaper’s coverage, Telegraph Money’s postbag has been flooded with similar stories from older drivers who are being hit by huge increases in their premiums. Here we explain why.

Rias couldn’t comment on Mr Hall’s case, saying only: “We regret that he is dissatisfied with the quote.” It said it was investigating.

'One million' drivers in their 80s

Our ageing population of drivers is turning into a nice little earner for insurance firms, figures suggest.

The number of drivers aged 70 and older is rising by 10,000 a month. There are now more than a million drivers in their 80s. Meanwhile, older-age premiums have been rising at a faster pace than any other age group. Average prices for over-50s have risen by 5pc to £247 over the past year, compared with prices staying the same when averaged across all age groups, according to Consumer Intelligence, a research firm.

The Association of British Insurers (ABI) published further insight last week, showing that premiums for those aged 66 to 70 are now £241, increasing to £255 for ages 71 to 75 and £291 for 76 to 80.

Once you reach 81, the premium increases to £352. This is cheaper than for, say, a 30-year-old (who pays £502 on average) but it is unlikely that the older driver will clock up as many miles or use the car during rush hour.

“A pensioner being charged a lot might think it’s personal but it’s not,” said Ian Hughes of Consumer Intelligence. “It’s that a computer somewhere has crunched a load of numbers and spat out a premium. It’s almost impossible to explain.”

Peculiar premium hikes explained

Anomalies such as a single person being more expensive to insure than two drivers are likely to affect older drivers if their partner dies.

Mr Hughes said: “Put simply, single drivers are more likely to have an accident. Insurers aren’t looking at a single person and saying that they’re a poor driver, but that they’re more likely to have a claim.”

Insurers will add around 10pc to the price of an older person’s policy if they insure alone, according to one source. Motorists are thought to drive more safely if they share a car or are driving with their spouse.

With Sheila Hancock another bizarre factor played a part. She had been involved in two accidents in two years, neither of them her fault. She was even sent a letter from the insurer of the other driver, admitting responsibility. The claims cost her insurer, Admiral, nothing.

But “no fault” claims often lead to a premium increase because statistically such drivers are more likely to go on and have accidents, Admiral said.

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Jill Shelton, 69, was in her office when a driver reversed into her car, leaving a note with contact details.

Her insurer, also Admiral, logged the claim as a “no fault” incident and her insurance quote, for her and her husband Ray, 72, jumped by £200. “I can only assume I’m being penalised for an incident in which I had played no active part,” she said.

“You have to tell your insurer about these incidents because you risk invalidating your policy otherwise, but if you do then you’re also left worse off.”

Older drivers also pay the price for being less likely to shop around. Terry Noble, an 82-year-old classic car enthusiast, knocked down his initial quote – £717 for two Jaguars, one classic and the other 10 years old – by £160. “I told them to requote, then requote again, and got quotes from rival insurers. Then I went back to my insurer and told them to match it or lose the business. They matched it.”

A spokesman for the Association of British Insurers said: “Older drivers usually pay more for their car insurance than middle-aged drivers because they are likely to make expensive claims. Those in their 90s still pay less, on average, than those under 30.”

Tricks for pensioner drivers to cut costs

But there is hope for mature motorists, who can use these legitimate tricks to reduce costs:

  1. Increase your annual mileage. Some people lie, claiming they drive only 2,000 to 3,000 miles, the typical annual mileage for a retired person, as they think it cuts costs. Insurers are wise to this, and it is often cheaper to overstate your mileage.
  2. List yourself as a pensioner. When you retire, your insurer might list you as “unemployed” so double-check that this is not the case, as you will be paying more as a result.
  3. Add more people to your policy. If you are a single person you will pay more, so add an adult son or daughter as a named driver. An exception applies if they are in their early 20s and therefore seen as riskier.

– kate.palmer@telegraph.co.uk

>> Find more cost-cutting insurance tricks in our weekly newsletter


Below are some of the questions often asked by customers. We hope the answers will be helpful to you

Q.1 How can I pay – annually or in interest-free monthly instalments?
Q.2 What are hidden admin fees?
Q.3 Will I have to pay any additional charges or fees once I have paid the premium?
Q.4 Who is eligible for Age UK Car Insurance and can younger drivers be included on the policy?
Q.5 What is 'No Claims Discount'?
Q.6 Can I protect my 'No Claims Discount'?
Q.7 What do I do if I have an accident?
Q.8 Will I get a courtesy car during repairs?
Q.9 Are the repairs guaranteed?
Q.10 Is Motor legal protection cover available?
Q.11 Is Motor Breakdown cover available?
Q.12 What if I change my mind?

Q.1 How can I pay – annually or in interest-free monthly instalments?

A. You can pay in full by credit or debit card, by cash, cheque or postal order, or pay monthly at no extra cost (0% APR Representative).

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Q.2 What are 'hidden admin fees'?

A. 'Hidden admin fees' can include adjustment fees, cancellation fees and duplicate document fees. Some companies also charge interest (APR) for paying monthly. On top of this, some may charge a 'Direct Debit fee' for monthly payments. Age UK Car Insurance does not charge any hidden admin fees. Age UK Car Insurance allows you to pay monthly at no extra cost (0% APR Representative). There are also no fees for policy amendments, cancelling your policy or getting duplicate copies of your policy documents.

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Q.3 Will I have to pay any additional charges or fees once I have paid the premium?

A. There are no hidden admin fees. This policy will not make you pay an additional administration fee when you make a change to your policy. Things like requesting a duplicate motor insurance certificate are free. An additional premium will only be requested if your change affects the premium required for the risk (an example of this would be 'adding an additional driver'). Where this is less than £10, a request for additional payment will not be made nor a refund issued.

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Q.4 Who is eligible for Age UK Car Insurance and can young drivers be included on the policy?

A. Although this insurance is designed with the over 50s in mind, there is no age restriction to apply.

Younger named drivers can be included on the policy, subject to acceptance by the insurer.

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Q.5 What is 'No-Claims Discount'?

A. This is a discount on your car insurance premium. You can receive this if you have not made any claims against your policy, or if you have made a claim and your insurer has made a full recovery of costs from the Third Party. This discount grows with time based on the number of years you have been claims free.

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Q.6 Can I protect my 'No-Claims Discount'?

A. You will be automatically be given Protected No Claims Discount if you have at least four years No Claim Discount or have not made more than 1 fault claim in the past 3 years. No Claims Discount Protection allows you to have up to two claims in three years without affecting your No Claims Discount. It does not protect the overall price of your insurance policy. The price of your insurance policy may increase following an accident even if you were not at fault. Other factors can also increase the price of your policy.

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Q.7 What do I do if I have an accident?

A. Simply call the accident helpline on 0345 601 6687 or +44 2380 621983 if calling from abroad, it is open 24 hours, 365 days a year. Friendly staff will do all they can to help you avoid any further stress or worry.

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Q.8 Will I get a courtesy car during repairs?

A. Yes. As long as you have comprehensive cover, the insurer Ageas Insurance Limited, will provide a courtesy car in the event of an accident or when recovered damaged following a theft, whilst repairs are being carried out by an approved Ageas repairer. A courtesy car will also be provided for up to 14 days should your car be stolen or written off.

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Q.9 Are the repairs guaranteed?

A. All repairs are guaranteed for up to three years, provided that they are carried out by one of the insurer's approved repairers.

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Q.10 Is Motor legal protection cover available?

A. Yes, you can take Motor legal protection cover that includes a 24/7 legal helpline for an extra cost. This covers you for legal costs to pursue compensation for personal injury when you are not at fault or to defend a motoring prosecution brought against you. You can also obtain legal advice and assistance (with costs up to £100,000) to pursue your claim for uninsured losses. This might include your policy excess, loss of earnings, car hire changes or additional travel expenses.

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Q.11 Is Motor Breakdown cover available?

A. Yes, you can add Motor Breakdown cover for an extra cost or your can buy this separately. This cover is provided by Intana Assistance. You'll be covered for roadside assistance, vehicle recovery, and you're even covered at home if your car won't start.

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Q.12 What if I change my mind?

A. If you are not satisfied with your policy you can cancel at any time by telephoning or writing to Age UK Insurance. You will only be charged for the time you have been on cover unless a claim has been made. If a claim has been made you will need to pay the full annual premium.

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