Your Age Can Mean Lower Insurance Premiums

In the world of insurance, believe it or not, there are actually benefits to getting older. This is because the clever folks at insurance companies have determined that older people (55 years and above) are generally more cautious and responsible then younger people and can afford better security measures that insurance companies are so fond of.

Take motor insurance. The older you are the more you can have your monthly insurance premiums reduced and even have your excesses waived on your motor insurance claims.

Obviously, there are certain terms and conditions that need to be adhered to, but there are some real insurance savings to be made. This is because as a 55-year old or older, it is an actuarial fact that you will generally spend more time at home and less time on the road, as well as tend to drive more cautiously in general.

Also, assuming you have a low insurance claims history, your insurance premiums should indeed be lower. The insurance company will take your entire insurance history into account and if they find you have minimal claims against your name, they'll reward you with lower monthly premiums.

General security also comes into the picture. It is generally accepted that people in their mid-fifties and older can afford better security systems for their homes, cars and properties. These include better and more high-tech alarm systems, reputable security companies, enclosed garages and/or parking space for their vehicles and so forth.

Area or location (location, location, location) also makes a large impact on the size of monthly insurance premiums and once again the older members of our community can benefit in this area.

The reason is simply that successful 55 year-olds and older tend to be able to afford to live in nicer areas and suburbs which attract less crime due to increased levels of security. These areas are generally farther away from the larger, unsafe CBD areas of cities. (Sandton CBD being an exception).

However, it is important to note that as someone in their fifties, all of the above is reliant on the fact that they have a relatively 'clean insurance claims history'. If you drive like Evil Knievel or have had 27 cars stolen, you'll end up paying about the same as an 18-year old who has just got their license.