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Car insurance for the over 50s
Age can have its advantages – including cheaper deals on
car insurance. Here
we look at how over 50s car insurance works and how it can help you save.
Do the over 50s pay less for car insurance?
Car insurance for the over 50s is broadly the same as it is for any age
group – policies are designed to help you cover the cost of accident related
damages and injuries depending on the level of cover you take out.
However, research by a comparison website in November 2009 found that men in
their 50s pay an average of £249.16 a year for car insurance – more than
£2,000 a year less than a male aged 18 who would pay an average of
£2,318.83. While the gap closes the older a driver gets, there can still be
substantial differences in the average price paid – for example, a male in
their 30s pays an average of £473.13 a year, more than £200 more than a male
driver in their 50s.
It’s not just men who can reap the rewards of age either – women in their
50s pay even less at an average of £204.33 a year. That’s more than £1,000
less than a girl aged 18 who would pay an average of £1,237.33 a year
according to the comparison website’s research.
Importantly however, premiums usually increase again when a driver is in
their 70s. For example, a male driver will pay an average of £200.41 a year
in their 60s but then an average of £217.90 a year in their 70s.
How does over 50s car insurance work?
Several insurance companies specifically tailor their products towards this
age group because drivers over the age of 50 have a better driving record
than their peers. By offering their products almost exclusively to more
mature drivers they believe that they can reduce their outgoing claims costs
and pass these savings on to consumers through reduced premiums.
Many of these companies also offer policies tailored towards the needs of
older drivers with features including:
- Breakdown cover: Though it is possible to take out breakdown cover
separately from car insurance, some companies do offer it as an add-on.
Check to see whether it provides all the cover you expect including
recovery/relay; home starts; onward travel; and European cover.
- Driving abroad: Several insurers offer the minimum level of cover
while driving in Europe. If you have a comprehensive policy do not assume
you will be offered the same level of cover abroad as at home – you may have
to pay extra to extend your cover overseas.
- Extended no-claims discounts: Some insurers offer additional
no-claims discounts to older drivers. Typically no-claims discounts are
capped at around 60 per cent after four or more years. However, with some
over 50s car insurance providers you may be able to enjoy maximum discounts
as high as 76 per cent. Just remember that you will usually lose two years’
no-claims discount for every claim you make regardless of whether you were
at fault for the accident or not. Some policies may offer no-claims discount
protection.
- Legal assistance cover: This typically covers the legal costs that
arise from an accident while you are driving and provides assistance to
cover uninsured losses.
- Vandalism exemption: Some insurers will exclude vandalism claims
when assessing no-claims bonuses believing it is unfair to penalise a driver
who has fallen victim to a vandal.
While these specialist providers may offer attractive features and claim to
offer lower premiums you should still compare these deals alongside those
from conventional insurers. This is because you may be able to find a more
appropriate policy elsewhere and, as most insurers recognise that older
drivers are less likely to make claims, most will offer drivers over the age
of 50 reduced premiums. So use a comparison website to get an overview of
the market and ensure you’re receiving value for money.
How to save on over 50s car insurance
Here are some additional tips to help you save money on car insurance:
- Agree to a mileage limit: Most insurers take into account your
annual mileage when assessing your premiums – the fewer miles you drive, the
less likely it is that an accident will occur. As such many over 50s car
insurance providers in particular offer mileage related discounts with which
you can pay less for agreeing to a mileage cap.
- Drive safely: Avoiding accidents will help you build up a no-claims
discount; while you will also pay less for car insurance if you avoid
motoring convictions.
- Install safety devices: Consider investing in alarms, immobilisers
and tracking devices – your insurer should be able to recommend which
devices will earn the largest discounts.
- Park safely: Storing your car in a locked garage overnight can keep
it out of the sight of prying thieves and reduce premiums.
- Pay annually: Generally, car insurers charge interest on monthly
payments so you can reduce your costs by paying premiums upfront.
- Vehicle use: If you are retired and only use your car for social
run-arounds make sure you aren’t paying to cover your vehicle for
‘commuting’ or ‘business’ use.
Article provided by gocompare.com
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