Car insurance costs up 43% for pensioners as premiums surge by £144
Rising fuel costs and maintenance bill hikes are creating a challenge for older people to keep up with the cost of driving.
Average car insurance premiums have risen by as much as 43 percent in one year, new data shows.
This reflects an increase of as much as £144 between January 2023 and January 2024, with car insurance prices now averaging £478 in the UK.
Price comparison experts at Quotezone.co.uk analysed insurance premiums for the over-65 age group ranking them from most to least expensive across the country. In some areas, premiums were found to be 63 percent more expensive than in others.
London, West Midlands and North West England are among the most expensive places for older drivers to insure their cars.
London had the most expensive premium for older drivers at £659 while Wales had the cheapest at just over £400, marking a 63 percent difference.
Greg Wilson, car insurance expert and CEO at Quotezone.co.uk said: “Those aged 65 and over are facing increased financial pressure as car insurance premiums soar by 43 percent across the country, from £334 to £478 in just 12 months from January 2023 to January this year – that’s an extra £144.
“These older drivers are predominantly living on pensions which are being stretched due to cost-of-living side effects – such as escalating energy bills and grocery costs, making this additional pressure a real concern.
“Although car insurance is normally at its lowest for this particular age group and well below the general UK average premium of £956, car-related expenses such as fluctuating fuel costs and hikes on repair and maintenance bills, are creating a challenge for older people to keep up with the cost of driving.”
However, he pointed out that there are ways for older drivers to find savings, such as never letting a policy auto-renew and exploring the option to switch to another provider.
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He added: “Switching is an easy process which could lead to meaningful savings yet many older drivers are reluctant to change providers.
“The likes of a comparison site can be a real help to shop around and compare products.”
Opting to pay annually can reduce the overall price as people can avoid paying the added interest on monthly instalments. Improving the security of the vehicle, such as fitting the car with an approved alarm, immobiliser, or tracking device can reduce the risk of theft and lower the price of the quote.
Maintaining a good credit score is also important to keep car insurance quotes lower, as insurers take this into consideration when calculating the premium.
Darren Miller, car expert at automotive company BigWantsYourCar.com, said: "Drivers should know that their credit score really affects how much they pay for car insurance.
“While a credit score doesn’t show how likely someone is to get into an accident, it helps insurers see how financially reliable a person is. This matters because people with better credit scores usually make fewer insurance claims.
"Improving your credit score could help you pay less for car insurance. A high credit score doesn’t mean you’ll automatically get lower rates, but it can sway insurers to offer you better prices. Being good with money helps with your debts and could make your car insurance cheaper."
