Car insurance for over 50s

Most drivers over the age of 50 are lucky to have affordable insurance premiums after years of driving. But your premiums are unlikely to keep falling as you get older

While car insurance is another annual or monthly cost you could probably do without, you probably associate expensive car insurance premiums with your younger years. Cover is notoriously expensive for young drivers, with those aged 17 to 22 paying an average of £1,436 per year for cover (source: AA British Insurance Premium Index, January 2017).

Car insurance premiums tend to slowly decrease as you get older, as more experience on the roads means you’re less of a risk in the eyes of insurers. Of course, you’re likely to notice a spike in your premium if you make a claim or commit a driving offence, but even the effects of these incidents will balance out after a few years of incident-free driving.

According to the AA’s latest data, the average car insurance premium reduces from an average of £489 for drivers in their 40s, to £453 for those in their 50s. In fact, for drivers in their 50s, there are still many years of savings to look forward to, as those in their 60s enjoy the lowest average premiums, priced at £380.

Tipping point in car insurance costs

However, car insurance prices are not all downhill from the age of 25. While you can usually enjoy many years of decreasing premiums based on your experience, many older drivers will have noticed a tipping point, where their average car insurance premiums begins to rise again.

All insurers’ rating factors will differ, but drivers tend to notice their car insurance premiums slowly rising again after the age of 70.

Despite your years of driving experience only increasing as time goes on, research from the Association of British Insurers (ABI) shows that the cost of the average claim begins to rise after the age of 70. As this presents a bigger risk to insurers, the cost of premiums is increased to reflect the added cost of making a claim.

Milestone ages

Some insurers only cover drivers up to a certain age, so you may also notice a sudden spike in your car insurance premium after you reach an age milestone – if this happens you may have passed your insurer’s usual acceptance age for new policies, which puts you in a higher risk category compared to most of their other customers.

How to save on car insurance for over 50s

While car insurance for over 50s tends to be affordable unless you have claims or convictions, there are ways to minimise the impact of the ‘tipping point’ when continuing to drive into your later years.

There are many insurers that specialise in insuring older drivers, and many can offer you very affordable policies even if you don’t have a clean driving record. Some of the better-known names in insurance are unable to offer affordable insurance to drivers over the age of 50, so make sure you consider some of the smaller brands when searching for a new policy.

Often the best way to save on your car insurance, no matter what your age, is to avoid renewing with the same insurer each year. Compare car insurance quotes below and see if you can save by switching today.