The age of the insured

Majority of people thought that the older the insured the lower the premium. That might not be the case as most insurance company uses different age band on deciding factors for the car insurance premium. The age band are categorized differently based on each individual claim experience from different insurance company.

For example, driver that is between the age of 18-30 years old are often classified under the high risk group. Often claims from these age group of people are the highest and therefore premium are higher. It is said that these group of people have the least responsibility and are more reckless in terms of driving.

On the other hand driver that is between the age of 65 years old and higher is also classified under the high risk group as these group of driver too have high claim rate. These groups of people may have the most driving experience but it is said that these group of people are more prone getting into accident.

The optimal age group would be some where between 35 to 60 years old. It is said that these group of people are much more mature, better in terms of ability to drive and focus. And also claim rate for these groups of people are much lower therefore getting a better rate for there car insurance premium.

No matter how I disagree with the above it is the way how our motor car insurance premium is being calculated in Singapore. I just hope this clear some of the doubt people might have rather then just blindly using their parents name for buying car insurance.

Will write more information on coming post. Feel free to post any useful comments related to the topic above. Thank you.

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