Surcharge for pensioners: This insurance costs almost 1,000 euros more

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03/04/202613:43

Retirees can often count on discounts as they age. The situation is different with car insurance. It becomes significantly more expensive as you get older. This is how you save money.

Seniors can Expect discounts on many things. It is often enough to show your pension certificate. But there are clear increases elsewhere. Driving a car, for example, can become significantly more expensive as you get older, at least when it comes to insurance.

Significant surcharges from the age of 65

Person holds banknotes in his hands — From the age of 65, the prices for fully comprehensive insurance increase. Jan Woitas/dpa

According to the model calculations, the costs for fully comprehensive insurance increase solely due to age. Compared to paying a 55 year old driver

65-year-olds around 14 percent more
75-year-olds around 69 percent more
85-year-olds even up to 172 percent more

Identical conditions are used, such as place of residence, vehicle, no-claims class and annual mileage. The reason for the surcharges lies in the insurers’ risk-based calculation: Statistically, the risk of accidents increases again in old age, especially in the case of serious damage.

This shows that even decades of accident-free driving experience does not completely protect against higher premiums. Although high no-claims classes generally lower the price, they can only partially compensate for the age-related surcharges.

Here’s how you can save on car insurance

Farewell to 2G: This is how NG eCall is changing the emergency call in the car — If insurance becomes more expensive as you get older, there are various savings options. IMAGO / Westend61

However, pensioners are not completely at the mercy of the price surcharges. Examples of ways to save include:

Insurance for a younger family memberwith the senior remaining registered as the driver. However, the effect is often small when the contract restarts. According to the model calculation, 85-year-olds only save 16 euros.
Transfer of the no-claims class on a child or spouse. This can reduce the premium significantly, by more than half for very old drivers.
Complete transfer of vehicle, insurance and SF classwhich in the model case can bring savings of several hundred euros per year.

As you get older, car insurance becomes noticeably more expensive. Anyone affected should compare tariffs and check whether transferring the no-claims class to the family makes financial sense.