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While we often focus on younger drivers when it comes to over-inflated insurance premiums, new research has shown that older drivers, specifically those over 70, are often being hit with excessively high costs, especially at renewal time.
According to research carried out by online insurance brokers Insuremycars.ie the problem of padding out renewal quotes for the over-70s is so bad, that costs can vary by as much as €800.
Jonathan Hehir, Managing Director of Insuremycars.ie, says they have observed a concerning market trend whereby some drivers of a certain age find themselves faced with huge insurance quotes and many simply "accept & renew"
"When it comes to insurance, it's widely known that the older the consumer, the less likely they are to shop around - mostly down to a fear of change and/ or a sense of loyalty to their current provider. As brokers we have noticed this, but we are not the only ones - insurers too are aware of this buyer behaviour, and it seems that in certain instances they are capitalising on it. Everyone knows that young drivers are charged high premiums and need to shop around to find the best value, but far fewer people know that this is the same for drivers over the age of 70. Our cost comparison grid shows the vast differences in the premiums being quoted by insurers."
The company took three notional customers, and compared their renewal costs from four major insurers. The fictional drivers were a 76-year old lady from Dublin 14, driving a new Ford Focus; a 72-year old man from Cork, driving a three-year old Skoda Octavia; and a 78-year old lady from Galway, driving a five-year old Volkswagen Polo. All of these drivers were given more than nine years' no-claims bonus.
The results were startling. For the Dublin-based driver, the renewal quotes varied from a low of €582 to a high of €1,395 - a gap of €813. For the Cork driver, the gap ran from €590 to €1,216, and for the Galway driver it was €642 to €1,288.
The worrying thing is that there's no one obvious culprit here. "We know that some drivers who approach us to for a better deal are actually contemplating paying these huge premiums. And our cost comparison revealed that it's not just two or three insurers charging more than everyone else - in each of the three examples a different insurer came offered the best premium so it's impossible to identify an insurer that will consistently offer the best value in every case. What it really shows is the very real need to shop around" said Hehir. "You are unlikely to be rewarded by sticking with the same insurer year after year. In addition, for those who fear change - it's important to note that all insurers are bound by the same consumer protection regulations, so whichever insurer you go to should not make any difference to the service they provide you. Insurers bank on consumer inertia as a way of introducing creeping premium increases to those who won't and don't move at renewal."