As you get older you’ll find that the cost of your car insurance falls because, broadly speaking, the premium is calculated to reflect how likely you are to make a claim.

Statistics show that drivers with more experience are less likely to be involved in accidents. This means that older drivers are generally less likely to make claims, and so will pay less for their insurance. 

When you’re over 50 you can generally expect to pay less. However, the price can often creep back up once you’re over the age of 70.

Here, Telegraph Money explains what older drivers need to know, and how to make sure you can find a good deal on your car insurance.

Is car insurance cheaper for older drivers?

There are a number of different factors that insurers look at when figuring out how much to charge for insurance.

The main factors are your address, occupation, the vehicle you drive, annual mileage, your driving history, where you keep your car parked at home, any named drivers added to the policy and of course, your age. 

Since a younger driver is classed as anyone under 25, drivers over the age of 25 will usually see their premiums fall. 

That’s because the risk of accidents (and therefore claims) reduces with age. 

Once you get to the age of 70, premium prices will usually start ticking upwards again. The rationale is that older drivers aged over 70 are statistically at a higher risk of having an accident.

This could be down to a loss of confidence behind the wheel the older you get, slower reflexes and the increased likelihood of developing medical conditions which could affect your driving.

Why car insurance varies with age

Statistics show that people in their 40s, 50s and 60s are safer drivers than those in their 20s, so during these decades you’ll enjoy the most competitive insurance premiums – as long as you remain claim-free and without driving convictions.

Older people tend to display safer driving habits, such as driving at safer times of day and at lower speeds, and driving less often than younger people. This all makes them less likely to make expensive claims.

Premiums will also be cheaper as you build up more claim-free years and benefit from an increasing no claims discount.

However, you may see an increase to your premium if one of your named drivers is a higher risk, such as aged under 25, or a spouse with driving convictions such as points on their licence.


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Benefits of specialised car insurance for older drivers

There are a handful of specialist providers offering cover to over 50s. Though their policies cover the same risks as a mainstream insurer, they might offer a few tailored extras built into the policy that they think older drivers will value. 

This could include more generous levels of cover for driving abroad, factoring in that those who have retired might spend more time driving overseas.

They might also come with a higher age limit than some mainstream insurers impose – or even better, no age limit at all. There’s no upper age limit for driving in Britain, so you can continue to drive into your 70s, 80s and even 90s – and beyond. But there are some hoops to jump through if you want to continue driving when you get older – more on this below.

Note that specialist providers, which include Rias and Saga, won’t necessarily offer you the best price. So make sure you compare quotes from standard car insurance companies too, to make sure you find the best value policy.

Choosing the right car insurance policy

Finding the right car insurance coverage requires some research and consideration. Luckily comparison websites do most of the legwork, but you still need to make sure you understand the nitty gritty. 

It’s best to compare cover offered by mainstream and specialist insurers so you can see the most competitive quotes for the cover you need. 

During your quest for affordable insurance, don’t let price be the main deciding factor because it can be a false economy if the cut-price policy doesn’t cover everything you need.

Understand what is covered and what is excluded. It will be time worth spent in the event you need to make a claim. 

You might also consider choosing a company with a good reputation for customer service – again, crucial should you need to make a claim.

Keeping the cost of cover down

It’s no secret that the cost of car insurance is rising across the board. The Association of British Insurers (ABI) reported that the average increase for car cover in the UK was a third (34pc), from the end of 2022 to the end of 2023, though some will have seen costs soar even higher.

If you’re worried about meeting rising insurance costs there are ways you can reduce the cost of your premiums by following these simple tips.

Pay annually

Monthly premiums come with an interest charge, as essentially you are taking out a 12-month loan. By paying upfront you can avoid extra costs.

Review named drivers

If you have grown up children on the policy who have flown the nest then you could consider removing them to see if that brings the cost down.

Drive less 

Insurance quotes include an estimate of how many miles you drive each year. Low mileage drivers are less of a risk because the less time you spend on the road, the less likely you are to be involved in an accident.

Increase security

Alarms and immobilisers reduce theft risk. You should keep your car off the road overnight – on a driveway or in a garage – if you can, where your car is less likely to be a target for thieves.

Choose a new car carefully

If you’re in the market for a new set of wheels, you can check the insurance group of a car you plan to buy by typing in the number plate to any website that offers this tool. It might help you work out an idea of whether it’s an affordable car to run – or not. 

Remember that cars with smaller engines are cheaper to insure as they are seen as less likely to be involved in an accident, and are also typically cheaper to repair or replace than a high-performance car.

Claim wisely

Preserve your no claims discount by claiming only if you really need to. For any small repairs you might be better off paying for the work yourself to avoid losing an unblemished no claims record.

Increase your excess

By opting for a higher voluntary excess – the amount you agree to pay towards any claim – you can usually reduce your premium. Just make sure you can afford to cover the excess costs if you ever need to make a claim.

Compare quotes

Don’t settle for a renewal price without comparing quotes elsewhere. If you find a cheaper policy, you can ask your existing insurer to match the price. If they won’t, switch.

Maintaining your driving privileges as you age

People drive for longer these days. The proportion of motorists aged 70 or over holding a full driving licence has increased from 45pc in 2002 to 73pc in 2022, according to official data.

That’s probably because a car is a lifeline for many older people, especially for those in rural areas. It offers independence and helps keep you connected to family, friends and key services.

There’s no age limit on driving in the UK, so as long as you don’t have medical conditions that affect your ability to drive safely you can carry on motoring.

However, there are some hoops to jump through once you get to the age of 70 to keep your driving licence valid and remain behind the wheel. 

Once you reach the age of 70, your licence will expire and the Driver and Vehicle Licensing Agency (DVLA) requires you to renew it if you want to carry on driving. 

About three months before your 70th birthday, you’ll get a D46P application form from the DVLA which you fill out online or on a paper copy to submit. 

You will need to provide an email address, home address history going back three years, your National Insurance number and a UK passport number if you want to change the photo on your licence. As part of the application you’ll need to declare any medical conditions you have that could affect your ability to drive safely.

You’ll need to have it renewed every three years on an ongoing basis and each application is free of charge.

During this time (or any other period in your life) if you develop any medical conditions, you might need to inform the DVLA and your insurer.


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