What’s age got to do with insurance?

A lot actually.

How it affects your insurance tends to depend on the type of insurance we’re talking about. For instance, when it comes to life insurance, your age plays quite a big role in how much you’ll pay. It’s better to get cover as early as possible, not only because anything can happen to you at any time (so it’s better to be prepared) but also because if you wait any longer, you’ll probably end up paying much more.

You see, with every shining birthday that passes, bringing with it cake and presents (happy birthday, btw), the premium that you’ll pay is likely to increase. The younger you are, the lower the rates you’ll pay.

But it’s a different story with car insurance.

Here’s how age affects car insurance

Your age affects 2 main things about your car insurance. The first thing is your premium. The second is your excess.

How age affects your excess

Younger drivers are affectionately called ‘inexperienced drivers’. Catchy, we know. And because they have less experience, they pay higher premiums and have a higher excess to pay when they claim.

These higher excesses are reserved especially for the under 25s.

The upside upside to wrinkles – As your car ages, your insurance should be adapted accordingly.

How age affects your premiums

The older you are, the lower your car insurance premiums will be. It’s not the only deciding factor that influences the price you’ll pay, but it’s a significant 1. You see, age brings experience. Even if you got your licence later on in life, you’ve still be on the road for many years as a passenger. You’ve heard the stories about how accidents happen and what drivers could have done differently to prevent these incidents.

So that’s the upside to wrinkles. What this means for the baby-faced drivers out there, unfortunately, is that you’ll pay higher premiums. In particular, the under 25s will pay a pretty steep car insurance premium.

So, how do you make sure that you are paying the right insurance premiums?

As your car ages, your insurance should be adapted accordingly. If you want to make sure you pay the right premium for your car insurance, make sure it is insured for its correct value.

Here are a few factors that play a role in determining your car insurance premium:

1. The make and model of your car: The type of car you buy plays a role in setting the insurance premium.
2. Your self-payment portion: Insurers refer to this as the excess.The higher the excess you agree to, the lower your monthly insurance premium tends to be.
3. The type of cover you choose: You can choose between several types of cover, depending on your circumstances.
4. Your track record: Previous claims, for example the number and scale of accidents that you have been involved in, if any.

We offer various options to suit your needs and pocket:

Comprehensive cover

Alternatively, you can opt for comprehensive car insurance that provides cover for accidental loss or damage to your vehicle irrespective of the cause, and includes third party liability.

Limited cover

If you think there’s a risk that you car will be stolen, you can choose to add fire and theft cover to your third party liability cover. You will then be covered for loss or damage to your vehicle, but only as a result of fire, lighting, explosion, hijacking, theft or attempted theft. If the damage is the result of a car accident or hailstorm, you will not be able to claim.

Comprehensive cover

Alternatively, you can opt for comprehensive car insurance that provides cover for accidental loss or damage to your vehicle irrespective of the cause, and includes third party liability. This is the most popular option, i.e about 80% of the vehicle claims that Santam pays result from vehicle accidents, damage to windscreens or accidental damage to vehicles, for example damage caused by a shopping trolley, hail or flooding.

Basic cover

Third party liability cover is the most affordable and basic option. It only covers you against damage to third parties and/or their property that is incurred by using the vehicle. If you drive into your neighbour’s wall or someone’s car, for example, or if you cause injury to another person in a car accident, you will be able to claim. Typically, this option is best suited if your vehicle is old and has a very low market value.

Last but not least – do your research, choose an insurance company that has a good record of claim pay-outs and efficient service.

 

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