Pensioners hit hard by soaring car insurance costs

The cost of motor insurance for pensioners surged by 43% in the space of a year, new figures from Quotezone have revealed.

Published yesterday (8 April 2024), the data showed that the average price of cover for over 65s stood at £478.79 in January 2024, up from the £334 recorded at the start of 2023.

Figures also showed that London, the West Midlands and North West England were among the most expensive places for older drivers to insure their cars.

London, for example, had the most expensive premium for older drivers at £659.

“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,” Quotezone chief executive Greg Wilson said.

“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.”

Guidance

In turn, Quotezone has issued guidance to help pensioners save on their insurance each year.

Pointers include paying the annual premium all in one go to save on paying interest and not to miss renewal reminders, with prices being more competitive around this time.

“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,” Wilson said.

”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.”