Retired will this affect motor insurance?

lisyloo

Except your not at work 8 hours a day so they must presume you are racing around garden centres and tea shops, Possibly having an afternoon tipple. And then bash into everything possible on the way home.

I found this quite amusing.

Insurers don't just look at what the logic may tell you, they look at the statistics and costs.
If a certain group of people e.g. retired in this case, are more expensive as a group, then the premiums rise if you are in this group. If as a group you are less expensive in terms of claims e.g. female, then the premium price goes down.
It really is as simple as that.

Unfortauntely sometimes this is counter intuitive.

The same goes for "non fault" claims. People often don't understand why their premium goes up just because they were unlucky enough to have someone crash into them, but statistically as a group they are now higher risk.

It isn't always intuitive unfotunately.

Quentin

Frozen_up_north wrote: »

I retired recently and was bemused by LV motor insurance... I told them I no longer needed the car insured for business use and my annual mileage estimate was reducing by more than half. It didn't make a scrap of difference to the premium!....

You seem to have been expecting a reduction when you made these changes??

You may have got one, but most insurers do make an admin charge for dealing with mid term policy changes, and so this may have swallowed up more than any refund due.

The insurer may then have waived any balance owing, rather than upset the apple cart by asking you for a payment!

lisyloo

I told them I no longer needed the car insured for business use

Business use if often very inexpnsive or free.

and my annual mileage estimate was reducing by more than half

Doing less mileage is not necessarily proportional to risk.
The safest drivers/rider I know are instructors who do high mileage.

People appear to make a lot of assumptions about how their information affects the risk, but the assumptions are not always right.

Quentin

lisyloo wrote: »

The safest drivers/rider I know are instructors who do high mileage......

Could these "instructors" you know doing high mileage possibly be......................... driving instructors?

(Who we would hope are amongst the safest, irrespective of how many miles they "do"!)

j2011

Retired should cut car insurance premiums

You would think so but the insurance companies have their own way of thinking.

Mine went up.

lisyloo

You would think so but the insurance companies have their own way of thinking.

Which has already been explained.
If the cost of claims is greater the premiums go up.
If the cost of claims is less the premiums go down.

It's not based on "what you would think", it based on actual claims experience i.e. the historical cost of claims.

oscarward

out of curiosity i did a couple of dummy quotes with direct line.

in work full time £551
retired £523
unemployed £669

lisyloo

Depending on how insureres "slice and dice" the statistics they can come up with different answers e.g. an insurers using 4 years worth of data can come up with a diffierent result to one using 6 years.

Grandmasu

Try being retired, just over 70 years old and a WIDOW insurance goes up! Apparantly it would go down if I had a husband or live in partner! A bit of a drastic solution to driving down costs :rotfl:

lisyloo

A bit of a drastic solution to driving down costs

Exactly :-)

Apart from curiosity value, there is no reason really for knowing about the relative costs of things we would not be willing to change.