What Happens To The Cost Of Car Insurance As You Get Older?

Age is a key factor used by car insurance providers to determine the price of your premium. Statistically however, it is younger drivers who have to endure the highest insurance costs. But that doesn’t mean prices steadily decline as you get older. In fact, once you reach your seventies, car insurance costs tend to climb back up again. 

So, how and why are car insurance prices impacted by age? And what can you do to lower the cost of your premium as you get older?

In This Guide:

• Does car insurance increase with age?
• How age affects car insurance
• Additional factors affecting car insurance
• Things you should consider as an older driver that may affect car insurance
• How to save on car insurance premiums as you get older
• Drive smart with Money Expert

How age affects car insurance

Let's take a closer look at three different age groups and how they affect car insurance premiums.

Car insurance for young adults

Young adults between the ages of 18-34 typically have the most expensive car insurance premiums. Citizens Advice data shows that on average, they pay £717 more than drivers aged between 35-54. 

Insurers give many reasons for charging young adults higher premiums, from inexperience and statistically higher accident rates to poor credit histories. Essentially, insurers consider young adults to be high-risk drivers, causing premiums to soar.

That said, with driving experience under their belts and a clean record, young adults can reduce their risk and the price of their car insurance.

Car insurance for adults 

From the age of around 34, car insurance premiums tend to drop significantly. There are lots of different factors at play that contribute to this drop, such as whether you have a clean driving record, a good credit score, and reliable income. 

Experience also helps. If you’ve been driving for some time and haven’t made any claims, you can expect to pay an annual premium of around £400-£600 — and it can get even lower than that. 

Car insurance for drivers over 70

Once you reach your early-to-mid seventies, car insurance premiums tend to climb back up. And just like young drivers, it’s down to perceived risk.

Statistically, older drivers are more likely to suffer from health and medical conditions that increase their risk of making claims. This includes vision and hearing loss, side effects from medications, and neurological conditions such as Parkinson's disease and dementia. Slower reaction times and reduced mobility are also factors contributing to higher premiums.

That said, lots of drivers aged 70+ are still medically fit to drive. And, if you have years of experience, a no-claims discount, and a clean record, your premium shouldn’t increase too excessively.

Additional factors affecting car insurance

Younger and older drivers typically pay more car insurance, but age isn’t the only factor that providers use to determine your premium.

Additional factors that affect how much car insurance you might pay include:

• Your driving history and no-claims discount.
• Your employment status and job title.
• Your credit score and credit history.
• The make, model, and security of your car.
• Where you park your vehicle overnight.
• Your car’s annual mileage. 
• The type of coverage you need.
• Your postcode. 

Things you should consider as an older driver that may affect car insurance

The law for older drivers doesn’t really change, but there are some extra things to consider once you reach the age of 70.

Driving licence renewal

Your driving licence will automatically expire when you reach 70. To continue driving, you’ll need to renew your driving licence with the DVLA and continue to do so every three years. You won’t need to retake your test and applications can be completed online or via post. 

Health and medical condition declarations

Health issues can affect anyone, but older adults are particularly vulnerable. Regular check-ups with your GP are essential for detecting new or worsening conditions early.

Any condition or disability that may affect your driving must be reported to the DVLA immediately. And, if necessary, you should take an assessment at a Driving Mobility Centre to understand how your condition impacts your driving abilities. 

Declaring medical conditions may increase your car insurance. But, if you don’t notify the DVLA of a condition that affects your driving, you could be fined up to £1000. And if you’re in an accident, your car insurer might not cover you.

Potential maximum age limits for car insurance

There’s no upper age limit for driving in the UK. So, providing you’re medically fit to do so, you can drive for as long as you like. But there’s one thing to bear in mind — some insurance providers impose a maximum age limit on their policies. Double-check that this isn’t the case before you make an application.

How to save on car insurance premiums as you get older

The ability to drive once you reach 70 and beyond grants you much-needed independence. You can still participate in your favourite activities, visit family and friends, and get to doctor’s appointments self-sufficiently, promoting positive mental health and well-being.

That said, older drivers are at an increased risk of being priced out of driving. Citizens Advice found that 2.6 million people don’t drive because they can’t afford the rising cost of car insurance — and older drivers are particularly affected. 

Luckily, there are several ways you can get cheaper insurance premiums as an older driver.

• Compare car insurance quotes: Car insurance rates vary depending on the provider. Use a comparison website like Money Expert to compare car insurance quotes across different insurers. This will help you find the best deal for the type of coverage you need, at a price that’s right for your budget.
• Declare a low mileage: If your commuting days are behind you, you may be able to save money on car insurance. People who spend less time on the road are considered less of a risk. So, declare low mileage to bring premium costs down.
• Pay annually: If possible, consider paying your car insurance premium upfront. You won’t be subject to interest, which can significantly cut costs.
• Increase your voluntary excess: Paying a higher excess can make premiums cheaper, so this could be an option if you have the funds.
• Park in a low-risk location: Parking your car on a drive or in a garage is considered safer than parking it on a busy street. So, if you have a safe space to park your car, declare it to lower insurance prices. 
• Choose a car that’s cheaper to insure: Cars are categorised into 50 insurance groups, ranging from the cheapest to the most expensive to insure. Consider swapping your car for a vehicle in a cheaper group.
• Get telematics insurance: Insurers offer discounts to safe, experienced drivers. Telematics insurance involves installing a tracking device, known as a black box, into your car. A black box tracks your driving behaviour, giving insurers the data they need to determine your premium based on how safely you drive. 

Drive smart with Money Expert

While the price of car insurance does increase when you reach your seventies, it doesn’t mean you can’t get an affordable premium. You can do many things to reduce your car insurance costs and continue driving comfortably, from getting black box insurance and declaring low mileage to swapping your car for one that’s cheaper to insure.

Use Money Expert to compare car insurance quotes for older drivers and secure the best deal for you.