Car insurance companies tend to offer cheaper insurance premiums for people over 50 years of age. The insurance companies calculate the cost of premium based on the level of risk involved.
Most companies presume that people over the age of 50 are less likely to get into an accident and considered safer and experienced drivers. They are also likely to keep their cars in good condition and have a low annual mileage. Most of the insurance companies assume that if an elderly make a claim, that claim will be of low value as compared to value of claims from people between the age group of 25 to 45 years. The damage to the cars would also be less, which would result in less cost to be spent on repairs.
There are chances that the car insurance premiums for the people over 50 could be increased because of the regular claims made by young and middle-aged drivers. To avoid such cases, a number of insurance companies have emerged specialising in catering to elderly people only. These companies provide high insurance coverage levels at cheaper prices as the people in the older age group cost the insurance companies less money.
Being calm and experienced drivers, the old people are not likely to be involved in the kind of accidents that drivers from the younger age group do. This makes the car insurance companies transfer their saving over to other customers.
Car insurance companies also expect that the people over 50 years of age have a good ‘no claims’ record which qualifies them for a bonus offering discounts of as much up to 70%. Why go and compare anywhere else when you can find information about higher insurance cover levels for the elderly online? Many car insurance companies offer discounts for multiple car insurance purchased by the over 50s insured.