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By Richard King, founder and CEO of Ticker
We know from Consumer Intelligence that insurance premiums for drivers over 70 have gone up more than 50% in 2023.1
The issue is continually hitting headlines in the press. Jeff Prestridge, personal finance editor for The Mail, recently wrote again about the high premiums faced by older drivers.
We know that drivers under 25 have a high crash frequency, but we also know that the risk starts rising again after 70, with increasing crash frequency and worsening injury or fatality rates.2
Connected insurance (telematics) came to the rescue of young drivers over a decade ago. Since that time, crash frequency has decreased,3 making our roads safer, and premiums have become more affordable.4
At the same time, this has given parents peace of mind and reduced the burden on the Bank of Mum and Dad.
The premiums for older drivers are going up and they’re likely not going to stop. It’s going to become harder for older people to stay on the road, leading to isolation, not keeping active and a lack of connection to the community. All things we know have a huge impact on remaining mentally and physically well as we age.
That’s why an older driver product is such an important part of our product strategy. We know we can bring the benefits of connected insurance to many more groups, but this is a particularly pressing issue.
Ticker is now one of the leading insurers for new drivers, but we also have products for van drivers, drivers with convictions and low-mileage drivers. Where we see so much future growth is with drivers over 70.
People will say: no, it won’t happen. But 10 years ago, people were saying telematics for young drivers wouldn’t happen. It did: Consumer Intelligence showed earlier this year that 72% of the cheapest quotes for young drivers were telematics policies5 and it’s almost a given that a new driver will have a connected policy. We could be sitting here in 10 years’ time and the vast majority of older drivers are enjoying the more affordable premiums and greater independence.
People keep asking me: what about older people using the technology? Perhaps 10 years ago, we might have found it difficult to get older drivers set up with a connected policy, but that’s far less likely now. The segment of the population without a smartphone or an iPad is rapidly shrinking.
Much older drivers often have support from their families when buying finance products like car insurance, who will hopefully find comfort in their parents having a connected policy. And, of course, when it comes to that very difficult time, the data could help with the discussion about when to stop driving.
It keeps coming up in the press. It’s been on the BBC. Why is it being talked about? For one, we have a rapidly aging population: between 2016 and 2020, the number of older drivers on the road increased by nearly 24%.6 Then, there’s that 50% rise in premiums – and a growing safety concern, as we’re also seeing in the news.
For young drivers, connected insurance has reduced crashes, reduced premiums and given families peace of mind. All benefits that would completely change the game for drivers over 70. And Ticker is going to be at the forefront of the older driver revolution, just like we were for young drivers.
1 Why has car insurance risen so much, The Independent
2 Reported road casualties Great Britain: older drivers factsheet 2021, Department for Transport
3 Motor insurance premiums skyrocket with record 21.1% annual increase, Consumer Intelligence
4 Reported road casualties Great Britain: older drivers factsheet 2020, Department for Transport
5 Telematics insurance helps cut young driver casualty rates by 35%
6 46% of the most competitive quotes for under-25s came from telematics providers in 2016 vs. 72% in 2023, Consumer Intelligence