According to a study conducted by the Institute for Democracy and Civil Society (IDZ), which was funded by the Federal Anti-Discrimination Agency, older people who purchase car insurance online are often disadvantaged. The research found that a 65-year-old closing an online insurance policy pays more for the policy than a 45-year-old, and simultaneously receives fewer available offers.
Ferda Ataman, the independent Federal Commissioner for Anti-Discrimination, stated that older individuals face inferior tariffs and a limited selection of options when purchasing car insurance online. Those affected view this practice as an unjust form of age discrimination, noting that even individuals with many years of accident-free driving often end up paying a higher premium once they reach old age.
The study revealed mixed results regarding driving history. While a high no-claims bonus does positively affect the rate for older insured individuals (aged 65 to 75)-meaning they pay less if they maintain a long accident-free record-the data also shows that, even with the same no-claims status, middle-aged insured individuals (aged 45 to 55) always pay lower tariffs than those over 65.
Commissioner Ataman referred to this disparity as a “black box in the pricing calculation.” She suggested that if insurance companies could demonstrate valid, objective reasons for their calculations, there should be no objection to disclosing their basis. She called for increased transparency and clearer statutory rights to information. “Only through greater transparency can insured people verify that they are not being discriminated against and that a legitimate risk assessment is taking place,” Ataman emphasized. Given the current era of AI, automated decision systems, and algorithms, she stressed that it is crucial to detect and effectively limit discrimination risks early on. This necessitates clear rights for affected parties to access information and stronger protection against discrimination, particularly within the insurance sector.
The Anti-Discrimination Agency conducted the testing by systematically gathering and evaluating private insurance offers through an online comparison portal. They investigated the extent to which age or gender-related inequalities exist in the selection of tariffs and offers. The study’s findings are based on quantitative data collection as well as qualitative interviews with insurance experts and older car owners.
