BaFin: No age discrimination in motor vehicle insurance

July 2, 2020, 9:52 am

BaFin has checked whether the impression given by older policyholders or car drivers is correct that they wrongly have to pay higher premiums in relation to other age groups. Conclusion of the investigation. With the age-dependent rating in motor vehicle insurance, everything goes well. There is no age discrimination among motor insurers.

Older motorists are not discriminated against in car insurance.

The current, market-wide investigation of the motor insurers operating in Germany comes to the conclusion that the age-dependent tariff in car insurance is based on recognized principles of risk-adequate calculation and thus corresponds to Section 20 (2) sentence 2 of the General Equal Treatment Act (AGG).

There were no indications of violations of this provision and thus of inadmissible discrimination against older or younger policyholders.

With regard to the premium situation for older drivers, BaFin found that, for a significant proportion of the motor insurers examined, even older policyholders under 79 years of age pay a lower average premium than, say, 27 to 41-year-old policyholders.

Although BaFin found that if the average claim rate remained the same, the average claim frequency among older people increased and insurers were allowed to calculate a corresponding premium surcharge, other tariff features – such as a higher no-claims class and lower annual mileage – mean that the premium burden of an average old-age policyholder is not insignificant muffled.

For some years now, it has been common practice among motor insurers operating in Germany to graduate car tariffs in particular according to the age of the policyholder, and sometimes also of the driver.

For example, surcharges are provided for in motor vehicle liability insurance and in full vehicle insurance for younger drivers and older policyholders. In the case of partial vehicle insurance (partially comprehensive), however, the premiums generally decrease with increasing age.

In the case of age-dependent tariffs, the insurers must comply with the provisions of Section 20 Paragraph 2 Clause 2 AGG, according to which different treatment based on age is only permitted if this is based on recognized principles of risk-adequate calculation.

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