What is the cheapest car insurance for UK pensioners?
05/04/2024
With car insurance premiums having risen by 43% on average between January 2023 and January 2024 for drivers over 65, it is an expensive time to be a pensioner behind the wheel. Despite this however, getting cheaper car insurance as a pensioner doesn’t need to be a hassle…you just need to know where to look.
Best car insurance for pensioners UK
When we say best, this can be subjective to the driver as what is the best policy for one driver may not be the best for another. Generally speaking, most pensioners will consider the ‘best’ insurance policy to be the cheapest. Whilst cheap car insurance is an important thing to consider when looking for a policy, you’ll also need to consider your coverage level.
Comprehensive car insurance is the most comprehensive level of protection available to motorists under a standard policy without add-ons. Surprisingly, comprehensive car insurance can actually be the cheapest car insurance option despite offering you the most coverage for your money. This is because riskier drivers tend to opt for third-party coverage under the assumption that it is the cheapest coverage. This then forces insurers to increase the cost of their third-party policies to compensate for insuring risky drivers. This means you may actually get more comprehensive insurance for less than a third-party policy.
This may seem counterintuitive but it’s true, fully comprehensive cover can be a cheaper option than third-party-only cover. We always recommend comparing comprehensive policies to motorists even if they are only looking for basic coverage due to this.
You can compare comprehensive car insurance policies here
How much does pensioner car insurance cost?
The cost of car insurance for pensioners will vary across regions. The current average premium cost for car insurance was £947 across all age groups and regions. Luckily for more senior drivers, those over the age of 65 have the cheapest premiums of any age group.
Despite this however, the amount you pay will still largely be dependent on your region as this is a risk factor which impacts all motorists. London was the most expensive region for pensioner car insurance whilst Wales came in at the cheapest.
| Older Driver Index Per Region (Jan 2024) | ||
| Regional Ranking | UK REGION | Ave. Premium |
| 1 | LONDON | £659.84 |
| 2 | WEST MIDLANDS | £513.43 |
| 3 | NORTH WEST ENGLAND | £510.59 |
| 4 | SOUTH EAST ENGLAND | £487.27 |
| 5 | NORTHERN IRELAND | £485.76 |
| 6 | EAST MIDLANDS | £476.41 |
| 7 | EAST OF ENGLAND | £473.04 |
| 8 | YORKSHIRE | £462.68 |
| 9 | SCOTLAND | £441.59 |
| 10 | NORTH EAST ENGLAND | £421.01 |
| 11 | SOUTH WEST ENGLAND | £408.94 |
| 12 | WALES | £404.95 |
| UK Average Over 65 | £478.79 | |
| % increase Jan 23- Jan 24 | 43% | |
Quotezone.co.uk CEO and car insurance expert Greg Wilson said: “Those aged 65 and over are facing increased financial pressure as car insurance premiums soar by 43% across the country, from £334 – £478 in just 12 months from January 2023 to January this year – that’s an extra £144.
The benefits of driving as a pensioner
Drivers over 65 years old enjoy the cheapest car insurance premiums of any age bracket. Since older drivers will have also been on the roads for longer, they have had time to also build up no-claims bonuses to their full potential. This can sometimes result in discounts of up to 70% with some providers. Pensioners will also typically drive less miles than other age brackets, further reducing their risk to insurers.
Whilst pensioners enjoy the cheapest car insurance of any age group, there is a slight increase in the average pensioner’s premiums past the age of 80. This is due to insurers factoring in an increase in accident risk.
How to get cheaper car insurance as a pensioner
Our team of insurance experts have come together to find the most practical ways that pensioners can start saving on their car insurance premiums. Here are our quick five tips for saving as a pensioner on your car insurance.
Quotezone.co.uk’s top five tips to help older drivers save:
1.Security – by installing anti-theft devices or dash cams you can reduce the risk of theft and vandalism to your car. This means that your security measures are price-sensitive questions on your insurance policy. The less likely your car is to be stolen, the more likely you’ll be able to save on your insurance. You should consider the following security features dependent on budget.
- Dashcam – this can be useful for proving fault in an accident
- Wheel lock – this means if thieves do enter your car, they won’t be able to operate the wheel
- Do not leave any valuables in your car – you will need to declare this if you do and it can raise premiums
2.Engine size – your vehicle’s engine size and horsepower is a key factor in determining your premium costs, both can impact the cost of your premium. Smaller cars with less powerful engines tend to be better value for car insurance premiums, as larger-engined cars will typically be able to achieve greater speeds and so have the potential for causing greater damages. Insers will consider smaller engined cars to be less risky to insure.
3.Parking – if your property has a garage, driveway or carport for parking, it is highly recommended that you use it to park your car when not in use. Parking in a secured location and not on a public road could save you at least £140.
4.Price search – normally three weeks before your policy is due for renewal is when the prices are most competitive so be sure not to miss your renewal reminders.
5.Payment – if you can, it’s usually better value to pay the annual premium all in one go to save on paying interest.
Comparing multiple quotes from multiple insurance providers is typically the easiest thing you can do as a pensioner to reduce your premiums and find cheap car insurance. Comparing multiple providers will significantly increase your chances of getting the cheapest pensioner car insurance policies on offer to you.
Some further things you can do to reduce your premiums include declaring low mileage, paying your insurance upfront rather than spreading the cost monthly, and not letting your insurance auto-renew. Auto-renewals are essentially policies that take payment from you automatically when your current insurance expires. We recommend not auto-renewing your current policy without comparing other providers to compare prices first. This can help you find cheaper insurance.
Get cheap pensioner car insurance
Quotezone.co.uk can increase your chances of finding the best car insurance for pensioners with our panel of over 110 UK-based insurance providers. Quickly compare car insurance quotes online and you could save up to £504 on your premiums.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.