Home insurance post retirement

Sarahspangles

Somebody said:

DullGreyGuy said:

A quick dummy quote showed almost no difference between employed full time call centre worker in telesales and retired, retired is 1% cheaper than a business consultant in insurance. Add 10 years to your age and there is more divergence between providers, some went 1% cheaper, two others went up 3-5%

Maybe specific to us but we were surprised to find higher premiums when we answered yes to "is your home occupied during the day?"

Perhaps they assume that over retirement age people are on a reduced income and are therefore more likely to claim.  Whereas with car insurance, you supply the estimate of how much you drive and if you remove a commute from your total it removes some risk.  There is an element of the risk that simply increases with mileage.

eddddy

Sarahspangles said:

Perhaps they assume that over retirement age people are on a reduced income and are therefore more likely to claim.  

Insurance companies don't really calculate quotes using 'assumptions' made by people.

Instead, they typically use Artificial Intelligence computer models. Details of all past claims are loaded into that model.


Then, in simplified terms, if somebody requests a quote is for...

a 67 year old, whose occupation is 'retired', with a 3 bedroom house, with 2 occupants, in postcode PO3 7FG

... the computer system will use past claims data to calculate the likelihood of claim(s) being made, and how much the claim(s) are likely to be for. And use that info to calculate on a premium to quote.