Specialist car insurance companies often offer plans that are exclusively for over 50s and have specific coverage. Senior drivers insurance plans are also known as over 50’s auto insurance. These schemes offer coverage that includes age-related discounts and protected no claim bonuses.
Contrary to other types of insurance it is based on years of statistical analysis. Underwriters believe that your risk decreases as you age and people who are in this age range can be considered safer drivers. A specialist policy for car insurance can be much cheaper than traditional motor coverage. These specialist or niche covers can be tailored to your risk factors, and you may find significant savings on the premium.
Why are older drivers more at risk?
Age-related specialist car insurance policies are for drivers who have similar risk characteristics. If the pool’s claims experience is lower, this pool of premiums will not require a large claim reserve. A risk pool with older drivers is considered a safe bet by car insurance companies. Premiums are lower and there may be fewer claims. Profits are higher.
The primary rating factor for car insurance is the location or place where the car was registered and maintained. Over 50-year-olds are more likely live in a bigger house, in a quiet area, or to be in an area with less car crime. They are also less likely to live within a city, where theft risk is higher. This factor, along with claims experience, is the most important to reduce premium quotes.
Older drivers are more likely to own a modern, safe car that has alarms and safety features. They are also more likely to take care of their cars. It isn’t hard to imagine the Sunday driver driving a modern saloon car or an elderly lady driving a supermini. Older drivers tend to drive cars in lower risk categories. Older drivers are more likely than younger drivers to keep their cars off the road or in a garage, which provides additional security premium discounts.
Many drivers don’t realize that they have the option to change their insurance company once they turn fifty. Many drivers remain with their current insurer due to misguided loyalty or inertia. They may have been with the same insurer their entire lives and are unable to switch to a better plan because they believe it is too complex or not worth the effort.
They are contributing to a risk pool that includes young drivers and boy racers, as well as those with high-claims experiences. As with all insurance, the cost of your premium is directly affected by the claims experience and perhaps even poor driving skills of others. You can save a lot of money on your car insurance by simply changing the risk pool that is more in line with your risk profile.
It is a good idea to shop around for senior driver insurance deals if you are over 50. These deals have been steadily increasing in number for those over fifty due to the new distribution methods like call centers and the internet, which allow car insurance companies to target specific deals to the over 50’s market.