Age
Age plays a role in insurance. The insurance company can stipulate minimum ages below which it will not accept applicants. The company can also set maximum age levels above which it will not accept or renew specific insurance policies. The age requirement can relate directly to the capacity of the insurance applicant to enter into legal contract.
Persons under the age of twenty one are classed as minors in terms of common law. Marriage changes a person’s status from that of a minor to that of a major and gives the person full contractual capacity, even if he/she is under the age of twenty one. Should that person become divorced or widowed he/she maintains their full contractual capacity, even if they are still under the age of twenty one.
This legal contractual capacity however has no bearing when insurance companies look at risk when granting car insurance. Insurance companies have found that people under the age of twenty five are a very high risk and therefore most insurance companies refuse to grant car insurance to people under the age of twenty five. If they do it will be at a higher premium.
Usually you will not find a maximum age when insurance companies will refuse to insure you, here capacity is also applicable. If your drivers’ license has been withdrawn due to bad eyesight you will no longer qualify for car insurance, it has nothing to do with age, you need a valid driver’s license to obtain car insurance.
Age also plays its role when the insurance company calculates the market value of the item to insure. On the one hand the market value of an old car may be very low but replacement parts and labour cost could be very high.