DRIVERS are forking out £100s more on their car insurance by merely using a certain key word as their occupation.
Experts have revealed elderly drivers are facing substantial increases in premiums with costs rising by up to 50% in some cases – simply by marking themselves as “retired” on car insurance forms.
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According to research by Quotezone, car insurance premiums are rising for elderly motorists in the UK with retired drivers listing “retired” as their occupation.
On average, this is seeing premiums jumping from £492 to £733 annually.
To combat this, Quotezone suggests variations in job titles could potentially reduce insurance costs – as long as the descriptions remain accurate and honest.
For unemployed individuals, adding a more experienced driver to the policy might help lower costs, although they caution against “fronting,” which is illegal.
DialDirect points out that premiums tend to rise for elderly drivers because insurance providers often view them as higher-risk.
They added: “Car insurance premiums can begin to rise as you become older as insurance providers typically view elderly drivers as higher-risk individuals.
“Like the way in which drivers between the age of 17 to 25 are often charged more for insurance, so are elderly drivers.
“However, the level of risk attached to different ages will vary for different insurance providers so make sure you shop around for the best deal.”
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Car insurance in the UK is a legal necessity, with three main levels of cover available.
These are fully comprehensive insurance, which offers the highest level of protection, covering damage to your vehicle, yourself and third party, fire and theft.
There’s then third party, fire and theft insurance, which covers damage you cause to others, as well as fire damage or theft of your own vehicle.
And there’s third party only insurance (TPO), which is the minimum legal requirement that covers damage caused to others but not your own vehicle.
TPO, however, won’t compensate for any damage to your own car or for your medical expenses following an accident that you’re responsible for.
This comes as an urgent DVLA warning was recently issued to drivers as a major change is set to come into force this week that could see them slapped with a £1,000 fine.
The huge change will affect laws surrounding number plates and could lead to thousands of plates becoming invalid.
Motorists using company cars should also expect to face fresh charges as part of major law changes hitting this month.
The new changes kicked in from September 1 – and includes toll hikes and fuel changes which are bound top affect thousands of Brit drivers.