Many insurance policies start increasing rapidly once you are over 50. The main reason for this is risk. Insurance companies consider people over 50 more likely to claim against their insurance. Each subsequent year insurance policies are progressively increased resulting in highly inflated premiums for people in their 60s, 70s and 80s.
When it comes to driving this position is backed by the Association of British Insurers (ABI). Their research highlights drivers over 70 are 13% more likely to make a claim on their insurance than people between the ages of 40 and 50. Plus the cost of their claim is likely to be higher.
The same applies for people purchasing travel insurance. Premiums notably begin to rise from 50 and progressively increase with age, reflecting the higher risk. Further research by the ABI shows over two thirds of people over 65 report a major pre-existing condition such as heart disease or respiratory problems. Customers over 65 are three times more likely to make a claim on their travel insurance than those aged 35, and people over 85 are eight times more likely to make a claim while on holidays.
Over 50 and healthy – Why are my insurance premiums so high?
Insurers understand the health and mobility of people over 50 can vary considerably. Healthier lifestyles and advances in medical treatment means age is not necessarily the benchmark it once was. However, it is currently very difficult for insurers to differentiate between individuals. So premiums are often based on the average risk presented by policy holders within an age group.
The ABI is calling for the Government to review current conditions and while this issue is being addressed, the insurance industry is responding to the growing demand for more competitive and flexible insurance for people over 50.
Which companies offer insurance for over 50s
More often than not you will find better deals on the internet. High street prices tend to have a premium attached to the policy.
Also, it is good to remember by shopping around each year rather than sticking with your current insurance policy you will more than likely save money. According to 50 plus insurance, by shopping around and not renewing with your current home insurance provider you can save as much as 20%. The reason being insurance companies provide better deals to new customers.
The most well known insurer for people over 50 is Saga, however there are a number of other insurers to choose from. Help the Aged offers over 50s insurance through intune. The intune group ltd is a wholly owned subsidiary of Help The Aged, with any profits generated from selling insurance going directly towards charitable activities. If it’s travel insurance you need try Insure for All. According to 65 Travel Insurance, specialists in comparing travel insurance for seniors, Insure for All is consistently cheaper than many of its competitors for similar travel insurance.