German seniors face dramatically increasing auto insurance premiums as they age, with drivers aged 85 paying up to 172 percent more than their 55-year-vintage counterparts, according to a recent analysis by comparison portal Verivox.
The substantial increases begin well before reaching 85. A 65-year-old driver already pays approximately 14 percent more for full coverage insurance – an additional €635.15 – compared to a 55-year-old, Verivox reported. By age 75, premiums surge by roughly 69 percent, reaching €945.19. The most significant jump occurs between 75 and 85, with premiums for the older driver climbing to €1,516.66.
Insurance companies justify the escalating costs by citing a statistically higher risk of serious accidents among older drivers. Aljoscha Ziller, Managing Director of Verivox Versicherungsvergleich GmbH, explained that insurers “calculate purely risk-based,” and that the increased probability of severe accidents in advanced age is directly reflected in premiums.
Despite maintaining a clean driving record and accumulating a high no-claims bonus, seniors often locate their accumulated benefits offset by age-related surcharges. Finanztip, another German consumer advice portal, recommends annual comparisons of insurance rates, particularly starting around age 60, as the extent of age-based premiums can vary significantly between insurers.
Several strategies exist to mitigate these rising costs. One common approach involves registering the vehicle under the name of a younger family member although listing the senior as a driver. But, Verivox modeling suggests this tactic yields limited savings – approximately €16 – for an 85-year-old driver.
Transferring a no-claims bonus to a younger family member or transferring the vehicle, insurance, and no-claims bonus entirely can yield more substantial savings, potentially hundreds of euros annually. According to Experten.de, a 85-year-old driver of a Volkswagen Golf pays €394 more for insurance than a driver 30 years younger with otherwise identical conditions.
Finanztip recommends a “double comparison” approach, initially using comparison portals like Verivox or Check24, followed by a secondary check with Huk24 to ensure the most competitive rate. The practice of age-based surcharges has prompted questions about potential discrimination, though insurers maintain their pricing is based on actuarial risk assessment.
