Why does age matter for car insurance companies?
Age is just a number… Uhm, not really when it comes to insurance. Age has a big impact on how much you pay for insurance. A lot of the time drivers who are young or much older pay higher premiums.
Insurance companies gather information about you, such as your age, location, marital status and job title, so that they can build your personal profile. Once they have a better picture of who you are, they can determine what kind of policy you need and how much you should pay.
How do insurance companies determine how much you should pay?
How they determine how much you should pay is pretty simple. It all depends on how likely you are to make a claim, particularly for a large amount.
Based on data over the years, insurers can predict more or less how much certain age-groups will probably cost them in claims.
Your age affects two things when it comes to your car insurance:
- Monthly premiums
According to statistics, younger drivers – 25 and under – are more likely to get into an accident. Perhaps it’s because they have less experience, less responsibilities and more fun! This makes them riskier to insure and therefore they’re often charged higher premiums and excesses.
As a younger person, one way to get your premiums lowered is to rather buy a slower, safer car as opposed to a faster car.
As you grow older and gain more experience on the road, you will be put in a safer risk bracket. So, you’ll probably see lower premiums. However, once you become a senior, your premiums may rise, yet again.
Often, with ageing comes slower reflexes and worsened eyesight. This can impact your ability to drive safely. This increases your chances of having an accident and therefore makes you a high risk driver.
When is the best time to get car insurance?
NOW! If you’re driving, you need cover so that if anything happens to your car at any time, you don’t have to fork out money you don’t have. Looking for car insurance in South Africa? Fill in our contact form and we’ll guide you through the entire process of getting the best cover for you.
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