subject: Over 50s car insurance boom [print this page] Over 50s car insurance boom
Healthier lifestyles and increasing tendencies for people to stay active later in life means car insurance for older drivers is set to experience a boom in the coming years. With new research suggesting that 40 per cent of all drivers will belong to the over-50s age group within the next 30 years, this often-overlooked demographic will become increasingly vital for insurance companies and policyholders alike.
It's not only health and wellbeing that's playing a part in the number of people choosing to continue driving later in life, with many other factors mirroring this desire to hold back the years.
The value of the so-called 'grey pound' for senior spending has risen sharply in the last few years, with more elderly people spending their retirement taking holidays and enjoying life, and changes to the maximum working age may see ever more Brits choosing to work ever later in life too. Today, a substantial percentage of the UK's working population is over 50 years of age, and for many their cars are important for getting them to and from work - meaning a good insurance policy is equally important.
Often a neglected insurance demographic in the past, it's clear that over 50 car insurance is of key importance for insurers looking to hold onto their customers by offering cheaper premiums for this already-privileged age group. Because drivers over 50 tend to be involved in fewer incidents, resulting in fewer claims being made, premiums are usually cheaper for these drivers than those in younger, higher risk categories - for example, teenage drivers who are just starting out.
While experience does count a great deal in the eyes of insurers - especially if older drivers have managed to avoid making claims throughout their lives, leading to a substantial no claims bonus - there are more reasons why drivers over 50 are involved in fewer accidents than their younger counterparts. Among these are the simple facts that older motorists tend to make fewer and shorter journeys, as well as being more likely to drive vehicles that are cheaper to insure.
As motorists enter their later life and become less proficient behind the wheel, their insurance premiums understandably rise, but continuing advances in healthcare mean that the current rates for drivers over 60, 70 and 80 years old may also need to be revised, as the over 50s car insurance boom resonates into later life.
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