It’s true that insurance premiums across the board have increased over recent years. This trend has affected many older individuals, who are finding significant increases in their premiums at point of renewal.
Although age discrimination generally is unlawful, in insurance, age can be one of the factors used to assess risk and be part of the decision when calculating the premium. As long as this is based on reliable data, this is accepted.
It is therefore likely that some insurance policy costs will change as you get older, such as life, travel, health and car insurance.
A report by Which? published earlier this year found that drivers over 65 could be paying an extra £500 on their annual car insurance premium if they didn’t switch provider.
What steps can you take to reduce your premiums?
The key point in Which?’s report is about switching provider. New customers tend to get better deals than those renewing so it is important to shop around. Particularly for older or vulnerable customers where there might be a higher perceived risk, the savings can be significant.
It is important to compare insurers and premiums at each renewal period, particularly if you think your new quote is too high.
This is where speaking to a broker can be invaluable as they can take away a lot of the legwork in comparing prices and policies.
They also understand what questions to ask you in order to find the right level of cover for you, and they know what should be a fair premium in the current market.
If you have specific requirements for any of your insurances, or even are unsure what you need, speak to a broker about which areas of cover to include in your policy. Rather than choosing a standard package or trying to work out what to include, you might find you just need the basics. In fact, you might find that you are currently over insured and you can reduce your level of cover which will save you money.
Creating choice encourages competition
Sometimes there are restrictions on the type of policy or what’s included in a policy for an older or vulnerable person.
Health and travel insurance are two examples where insurers often restrict claim limits or what can be claimed for.
While this might seem unfair, what it does do is allow insurers to be more competitive in the market and encourages more insurers into that sector which ultimately gives people more choice.
To find policies with higher levels of coverage, often the best route is through a specialist provider who will likely be able to cover more at a more reasonable rate than a general insurer.
Protecting yourself when choosing your insurance policy
As well as shopping around at each renewal period, always make sure you work with a reputable broker or insurance provider so you can be confident you are being treated fairly.
If you consider yourself to be a vulnerable customer, or at risk of unfair treatment when choosing an insurance policy, we share information and tips on who to talk to and how to protect yourself in our blog article, All Med Pro protect vulnerable customers.