Car Insurance Tips for the Over 70s

Car insurance prices have risen by over 40% in the past year according to the AA, with the effects of the credit crunch and an increase in the number of fraudulent claims being made both having been blamed for these price increases.

Along with these price increases, equality has also become a massive talking point with the European Court of Justice (ECJ) recently ruling that from 21st December 2012 it will be illegal for car insurance firms to discriminate on the grounds of gender. This has prompted calls for a similar ruling to be made on age discrimination, with research by moneysupermarket.com revealing that car insurance premiums offered to motorists increase once they pass the age of 70.

However, in the meantime there are ways to fight back against the insurers and obtain the cheaper car insurance premiums which you are entitled to:

Pick the right car

Other than the driver on the policy, the car is the most important factor in the determination of your annual insurance bill.

Every type of car is assigned to an insurance group numbered between one and twenty, with cars in insurance group one being the cheapest to insure. This is generally decided upon based on the cars engine size, value and repair cost. You should therefore choose a car in the lowest insurance group possible in order to benefit from insurance cost savings.

Shop around and haggle

In order to make sure that you get the best insurance deal possible you should compare prices with as many different insurers as you can. The quickest and easiest way of doing this is by using a price comparison website which will compare deals offered through hundreds of different insurers in seconds.

You should do this as part of your car insurance routine each year, as the renewal price offered by your current insurer will likely be made with the knowledge that you will be unlikely to challenge it and happy to avoid the extra effort which comes with shopping around. Prove them wrong by taking this advice, with most motorists generally finding 10% cost savings using this method.

Also consider phoning your current insurer and telling them about cheaper deals you have been offered by other insurers. It is likely that they will make a better offer so as to avoid losing your custom to a rival.

Get on your bike

Logically, the more miles you travel in your car the more likely it is that you will be involved in an accident. Lowering your annual mileage allowance on your insurance policy is therefore another good way to reduce your perceived risk to insurers and therefore benefit from cost savings.

However, remember not to set a mileage allowance which is too low because if you exceed it the insurer will be legally entitled to refuse to pay out in the event of a claim being made.

Safety and Security

Where you park you car at night and during the day is another factor which will have an impact on your insurance premiums. Parking in a secure location such as a locked garage will result in cheaper insurance offers than what will be received by a driver who parks their car on the road which it is more likely to be stolen or vandalised.

Therefore, wherever possible you should park in a garage or at the very least a driveway in order to avoid paying more than you have to for insurance.

Cover and Excess

Traditionally it has been more expensive to get fully comprehensive car insurance than third party cover. The logical reason for this is because fully comprehensive covers both yourself and others, while third party only covers other motorists.

However, insurers have noticed that people seeking third party policies are statistically more likely to have an accident and there is now very little difference in prices between the two levels of insurance, with it expected that third party will be fazed out in the coming years. You should therefore ignore anyone who tells you that third party is the cheaper option.

Another old truism is that you will make a saving if you offer to pay a higher voluntary excess in the event of a claim being made. However, insurers have noticed that this option is also generally taken by people who are statistically more likely to have an accident. This means that there is only a marginally benefit in offering to pay a higher voluntary excess, so it is best to avoid it.

Get cheaper car insurance premiums

Insurers using age to discriminate against a driver is a controversial topic which has largely taken a back seat to the arguments over gender equality. However, there are ways to fight back and you don’t have to feel like a victim. Following these tips will put you on the right track to benefit from cheaper car insurance premiums.

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