We have discusses in quite some detail the nature of Pay as You Drive Car Insurance – and how “Driving” can be measured and monitored. We would also like to focus on the “You” part of this description. Who are YOU and which of YOUR personal characteristics would be most important?
We have made reference to AGE of the driver – but would like to argue that this requires closer investigation and a more detailed description.
Age less important than driving experience!
We need to recognize that age has always been regarded as one of the important factors used in the formula to calculate car insurance problems. This is done so across the globe. We have made reference to the fact that Young drivers are perceived to be a higher accident risk and are faced with much higher car insurance premiums. We have also commented on the elderly road users and how the insurance premiums of elderly female drivers tend to increase significantly after the age of 60.
Is your birth date always that important for car insurance premiums?
In South Africa car insurance companies are faced with a number of unique factors to consider. There has been a rather unique shift in vehicle ownership in a country that has experienced significant political changes since 1994.
No-one will deny that a large group of the population which could be described as “previously disadvantaged” have been given greater access to economic participation, wealth and vehicle ownership. Many of these vehicle owners have only now, in their 40’s and 50”s been able to acquire a license, own a vehicle and drive a vehicle!
These older vehicle owners are also now purchasing car insurance policies for the first time – and car insurers need to consider that they are – although more mature – still novice drivers!
Age should be considered as Driving Age
We would argue that Car insurers will not look at the age of the driver – but rather the Driving Age!
Driving Age would be:
- The years since date on the drivers license of the driver
- The years that the person has been driving
- The experience of the driver/policy applicant behind the wheel.
This driving age should be considered with factors such as the distance driven by the driver, his accident record, traffic violations/ convictions etc. This would provide a far better measure to establish the risk of accidents than only the age of the applicant!