Insurance World

According to the Association of British Insurers we can expect, over the next 50 years, an incredible 150% rise in the number of car drivers aged 70 and over, who hold a full driving licence. The fact that the “baby boomers” are now reaching retirement and people are generally living longer is a major factor in this calculation.

They also forecast that this group of older drivers will go from the present approximately 4 million to over 10 million by 2050. It is expected that the number of drivers of other ages will remain fairly constant. If this is correct then by 2050 nearly 40% of the driving population will be aged 60 or more and nearly a quarter of then will be over 70!

The Government has been requested by the ABI to consider the possibility of medical and eyesight tests to be carried out on a regular basis.

As far as insurance is concerned, risk levels are extremely difficult to measure as driving skills are liable to deteriorate over the years, due to a gradual decline in both health and eyesight. The deterioration is particularly noticeable once the driver has reached the aged of 80. This leads to slower response times and therefore puts these people at a much higher accident risk. It also makes recent driving experience, normally a key part in working out risk, less relevant as drivers get older.

The ABI say that the numbers of claims made by older drivers are inclined to worsen with age and that the drivers themselves are more likely to be badly injured or killed if they’re involved in an accident. Claim costs rise with age and are 50% higher for a driver of over 80 than for one aged 60.

No wonder, then, that some older drivers are beginning to have problems with obtaining suitable insurance. There’s no need to panic though, it appears that virtually all insurers will continue your current cover without applying age restrictions. It doesn’t follow that this will give you the best deal, though, and it’s good to obtain a few alternative quotes from time to time.

Currently the insurance market for these drivers is relatively small but as the numbers increase then more insurance companies will join in the competition and specialized firm will join those already offering this type of cover. It’s obviously going to be a fast-growing market.

At the other end of the scale, Norwich Union has just launched a “young drivers” policy for its current customers. As young drivers have a ten-fold chance of a serious accident at night time, there is a charge of Ј1 for each time they are out on the road between 11pm and 6am.

This is part of a host of new, up to date policies being introduced in an effort to gain new customers, whilst keeping down the costs of insurance.

If you’re willing to pay Ј475 excess, waive your no-claims discount and courtesy car, for instance, then you can expect to save 12% against the normal fully comprehensive cover quote from Tesco, with their new “Value” policy.

Direct Line is another company with some new ideas, such as allowing motorcyclists to transfer no-claim discounts when purchasing a car. Also they have a policy that lets family members build up no-claim discounts on each others’ cars, and offers a discount if all householders insure their cars with them.

Check carefully before jumping in with one of these new policies, however, as the big insurers will normally let you cut your costs by opting out of some of these measures. For instance, if you were to raise your excess and maybe forego your no claims protection, this would make a great deal of difference to your premium.

It’s a fast changing scene and certainly not easy to keep up with, whatever your age. The best advice we can give is to get online and find an insurance broker. They will take into account all your circumstances and compare a number of insurance companies to obtain the best deal to suit you, at the most competitive price. You’ll get your online discount too.

What do you need to know if you are thinking about buying online car insurance? Since it first crept its way into our daily lives, the internet has offered us a new and, some would say, better way to find almost anything we need, and car insurance quotes are no exception. Attracted by this cheap and easy way to do business, companies encourage potential customers to transact with them this way, as it saves them both time and money by helping keep office and shop floor costs low. Now you can take advantage of companies’ fondness for the internet way of doing things by dialling up to some great online car insurance deals.

We all know that any business, whether that be a car insurance provider, a supermarket or a local pet groomer’s place, loves nothing more than to make money, and second to that comes making saving wherever they can. But any company is only as strong as the customers they can attract, so when they make savings, they like to pass them on to you, to encourage you to turn to them in future for your insurance, grocery or pet grooming needs. The great savings offered to companies by using the internet therefore mean that providers of such online products and services as car insurance can offer better deals through this medium than they can in-store, so if you are looking for a really competitive quote, then online auto insurance could be the way for you to go.

To see this in action for yourself, try this simple experiment. When collecting quotes for insuring your type of car, coupled with your own driving history, get your telephone out and make a few calls. When you have finished making phone enquiries about car insurance, visit the very same companies online just to see hoe much cheaper you can get the very same deal. Surprised? Just be glad you checked before you committed to your phone call quote!

Remember though that even the great deals offered in online car insurance can’t help you find a great deal if you have a sloppy driving history, so ensure that you get the best possible insurance deal by always driving with care. By driving responsibly, not only will you stay safe, but you’ll save a great deal of money too – money that you can go and spend on things much more fun than car insurance!