Compare car insurance quotes for the over 50s

Statistically, drivers start to have fewer accidents once they pass 50 (the peak for volume of accidents is the 49-50 age group). Accident rates really drop off after 60.  

But importantly, the proportion of accidents that include injuries falls, with impacts being slower and less damaging – costing insurers less.

For 2019 the statistics show:

• 50- to 59-year-olds had 12.7% of all reported car accidents with 44% involving injury

• 60- to 69-year-olds had 7% of all reported car accidents with 42% involving injury

A much higher proportion of accidents among younger drivers cause injuries. Damages paid out by car insurers have to cover the victim’s remaining life so the younger the injured person, the more expensive the payout.

A big reason for the discounted insurance is the fact that older drivers are more likely to injure older third-parties (often passengers) and insurers have to pay out less for older victims.

Car insurance is based on your age but it is also based on:

• driving history - as well as being experienced, over 50s also may have built up a no claims discount

• your car – each car falls into one of 50 groups with lowest groups being the cheapest to insure because they are quick, east and cheap to repair if involved in an accident

• where you live - If your home is in an area with high rates of car crime, you’ll generally pay more for your insurance

• where you keep your car – having off-road parking or, better still a garage, reduces risk and cuts premiums

Don’t forget the cost of Insurance Premium Tax (IPT) standard IPT is currently 12%.

The over 50s have a big choice of insurers keen to offer competitively priced and good value car insurance. Several car insurers have specialist policies aimed at drivers over 50 or who market their policies in affinity with an organisation that represents the over 50s. But most insurers are keen to have over 50s as customers and competition pushes down the price.

• young drivers, under 25, paid an average of £1,954 for car insurance in 2020

• those aged 25-49 paid £628 for an annual policy

• drivers age 50+ paid an average of £370 for car insurance

Source: Consumer Intelligence car insurance price index, December 2020.

• Garage your car: Keeping a car on the road increases the risk of it being stolen, vandalised or accidentally damaged. Bring it onto your driveway if you have one, or better still, clear out that garage you use for storage and put your car away each night. Insurers often discount for garaged cars.

• Change the type of car you drive: Another factor is the type of car you drive, with the car’s speed, security features, and value all playing a big part – read our guide to the cheapest cars to insure to find out which cars attract the cheapest insurance premiums.

• Increase your voluntary excess: Opting for a bigger voluntary excess may result in a cheaper monthly premium. But make sure you can afford any voluntary excess if you need to claim. This excess is in addition to the compulsory excess set by your insurer. This is what you will have to pay if you ever have to claim. However, you can also insure your excess, so that if your claim exceeded your excess it too would be paid. 

• Pay upfront: Pay for your insurance in one go if you can. Spreading the cost of your car insurance over 12 payments, monthly, may seem cheaper but remember you will be paying interest on top of the amount you pay towards your car insurance premium.    

• Drive less: Limiting your miles makes you less of an insurance risk. Simply because you are reducing your risk of having an accident. When you take out your car insurance policy the insurer always asks for an estimate of your maximum annual mileage. You need to try and you’re your mileage low, although you need to be realistic as to how much you will drive. 

• Install extra security: Having an alarm or immobiliser is considered a theft deterrent and by deterring car thieves you can reduce your car insurance. Not all insurers will offer this, so check first.

• Do an advanced driving course: Some insurers will offer a discount for drivers who have completed an advanced driving course. There are several recognised providers such as the Institute of Advanced Motorists and the Royal Society for the Prevention of Accidents. Driving courses are not just for new drivers – you’ll be surprised how much you will learn.

• Shop around: Aim for a month before your car insurance renewal comes up could also save you money. It may be your current car insurance is the cheapest available but because pricing changes it’s always best to stay vigilant.

• Consider a multi car insurance policy: If your driveway is heaving with cars it may make more sense to try and include all those cars and yours on one policy. Some insurers allow you to take out a single multicar policy including for children at university. Check to see if you can reduce your insurance costs with a multi-car insurance policy.

• Consider black box car insurance: Some insurers offer a telematics policy that either means a black box is installed in your car or you download a special app to your phone. It reports to the insurer when you drive and how you drive, revealing if you speed, if you accelerate and brake sharply, and how smoothly you take corners. Black box insurers reward good driving.

Car insurance premiums tend to fall, on average, as you gain experience both on the road and in life in general. 

However, they begin to rise again as the effects of ageing tighten their grip. 

Research from Nimblefins, an independent research group, found premiums drop steadily as drivers get older, with the lowest average premium being for drivers aged 55, who’d pay £468.

Premiums then begin to rise. 

• By 65, a driver will be paying £491 on average

• By 75, a driver will be paying £752 on average

Health can affect car insurance premiums as you get older, but it’s far from being the defining characteristic when it comes to how much you’ll pay for cover. 

Unlike life or travel insurance where you’ll be probed about your health, car insurers work on the principle that if the DVLA is happy for you to keep driving, then so are they.

Car insurers offer a range of policy extras that can be bolted on to standard insurance. Many are available to drivers of all ages, including:

• Legal cover

• Courtesy car

• Breakdown cover

• No claims bonus protection

• Personal accident cover

• Windscreen cover

• Car key cover

• Car excess cover

However, as you get older certain other added extras begin to emerge or appeal to a greater extent, particularly if you approach a specialist insurer or broker. These include:

• Drive any car cover – which would allow any qualified driver to take over the driving in your car to get you home

• Comprehensive European car cover – the standard is third party only

• Extended trip cover – this will allow you to drive on the continent for more than the usual 90 days

Insurers view drivers of all ages in the same way. They scrutinise their claims databases and base premiums on the results. 

For example, young and inexperienced drivers tend to make more claims, so they’ll be charged more. 

Older drivers are more experienced, and so make fewer claims. This means their premiums are lower. However, it’s not as simple as this: there are any number of reasons that would skew this formula. 

The following are some reasons why your premium could rise even though you are over 50:

• Points on licence

• Recent history of insurance claims

• Driving a high-value car

• Driving an old car (which may be more likely to break down)

• Putting your child on your insurance as a named driver

• Increasing the number of miles you drive