‘Staggering’ car insurance price differences for over-70s despite Covid home restrictions

A comparison analysis showed the dearest insurer was charging €1,000 more than the cheapest on the market

A comparison analysis revealed 'staggering' price differentials across the market for people aged over 70, with the dearest insurer charging €1,000 more than the cheapest on the market. 

Some insurers are charging older drivers triple the price of premiums available elsewhere on the market, according to a new analysis by insuremycars.ie.

The insurance broker say their over-70s cost comparison analysis revealed “staggering” price differentials for those most likely to be cocooning since March, with the dearest insurer charging €1,000 more than the cheapest on the market.

Jonathan Hehir, managing director of InsuremyCars.ie, said the survey came off the back of an increase in calls from drivers in this age bracket last year, particularly when Covid-19 lockdown restrictions were in place across the country.

Jonathan Hehir points out that insurers generally offer better value to people prepared to shop around — and older drivers are the least likely to switch. 

“During the course of the year, we have found the volume of calls from people in their late 60s and 70s has increased, spiking in particular during the weeks and months that the most severe restrictions were in place across the country."

The analysis showed astonishing differences in prices such as a 74- and 76-year-old offered both €534 and €1,594 to insure a Peugeot 208 1.2 in Dunleer, Co Louth.

In Roscrea, Co Tipperary, drivers aged 71 and 73 were offered €447 and €1,231 to insure their Mondeo 2.0.

For a 71- and 73-year-old driver of a Corolla 1.4 in Ballincollig, Co Cork, the best price offered was €429, while the worst was €912.

Mr Hehir said people in the over-70 age bracket “are definitely on the road less” as a result of the Covid-19 pandemic, and this should be reflected in their premiums but that, in the meantime, older consumers must consider switching providers to get the best deal.

A report from the Central Bank last month confirmed that most insurance companies engage in some form of differential or dual pricing, meaning ‘loyal’ customers can be penalised with higher premiums than those who switch insurers or negotiate lower prices despite having similar risk and cost of service profiles.

Despite this, consumers tend to show a clear preference for staying with an existing insurance provider and anecdotal evidence suggests those over 70 are the least likely group to move insurer, believing loyalty will result in favourable pricing, Mr Hehir explained.

“Older drivers who contact us are, more often than not, astounded at the premiums we can quote for them.” 

“In the last 12 months, more insurers have taken an interest in the older age categories, and this has driven the prices down a little… but drivers will never benefit from these cheaper prices if they don’t ring around," he said.