How Age Of The Owner Affects Car Insurance Premium

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Buying a car is a dream all of us have that we want to achieve one day. Some may already have a car and would know what it takes to maintain a car in a good condition with the right documentation. Since buying a car costs a huge amount, it is necessary that we insure the vehicle with a comprehensive car insurance policy which provides protection for various damages that take place due to accidents or mishaps.

Although the law expects every car owner to at least have a third-party policy, it is a fact that it is never enough. It provides coverage for a specific situation and it does not fulfill the requirements of the car. Hence, a comprehensive policy is the ideal cover for your car.

If you own a car insurance policy already, you may have noticed that the premium calculation is based on various factors. Yes, the premium to renew a car insurance policy does not depend only on the cubic capacity of the car, but it is also influenced by many other factors as mentioned below:

• Depreciation
• No-claim bonus
• Insured Declared Value (IDV)
• Age of the owner
• Age of the vehicle
• City of registration
• City of residence
• Driving record
• Number of claims
• Make and model
• Manufacturer

If you have a zero-depreciation cover, then the depreciation value on the car will not be considered either for insurance claims or at the time of policy renewal. However, if the proper IDV is not declared, this could affect the premium calculation. While each of the above-mentioned factors are considered for premium calculation, the owner’s age may seem a little surprising to you.

There is no doubt that there are only a few youngsters who drive safely and responsibly with proper road and traffic judgments. But as said, there are only a few. There have been so many studies conducted recently to determine the cause for road accidents and the age of the victims. While many of the victims died due to not wearing safety gears like helmets and knee pads, others died due to over speeding and violating traffic signals. In both scenarios, majority of the victims were youngsters.

Insurance companies consider the age of the vehicle owner as one of the prime factors for premium amount calculation. Insurance companies look at your age, occupation, driving history and the city you live in to determine your quality of driving. Therefore, if you are an experienced driver who is above 35 years of age and has a positive driving record, the insurers generally offer a special discount on the premium amount. It is only logical because, if you have a good driving record it invariably means that there will be a lower number of claims by you, which in turn is profitable for the insurance company.

A per the IRDAI norms, special discounts related to age are given to people who work as teachers, government employees, Chartered Accountants, military officials, etc. If you are a youngster within the age of 25 years, then the insurer will charge a little higher premium than a person who is above 30 years old. However, there are a few exceptions like occupation and driving history that are considered in both cases.

Hence, you can see that with age comes greater discounts on car insurance premiums. There is no doubt that as you grow older, the driving style also changes and you drive more carefully with a proper speed limit.You will also achieve higher mileage that would not only benefit your car but the insurance plan as well.

Therefore, if you are a good driver and have not claimed your insurance in a policy year, your insurer will also provide a no-claim bonus as a discount and appreciation for your responsible driving. Hence, age of the owner is one of the vital factors that helps either increase or decrease your car insurance policy premium.