Older drivers face soaring car insurance premiums

Older motorists face having to spend up to £600 more a year in car insurance as premiums soar for those aged over 60.

Motorists aged 80 and over will see the steepest price rises, with premiums going up 27% in a year.

However, even those aged between 65 and 79 will see a 26% increase in car insurance, according to research from Independent Advisor Car Insurance.

Its expert Connor Campbell said that while there is no legal maximum age limit for car insurance, motorists in their 70s and beyond may face less choice of policies. This lack of competition could be one reason why premiums are going up more steeply for older motorists.

However, he advised motorists still shop around, because there will be a car insurance policy out there, adding that most insurers don’t place an upper age limit on their policies.

He also has tips for older motorists seeking cheaper car insurance.

"As you enter your 70s, your driving habits may change. You’re likely to be retired, potentially driving less than you were a decade ago. If you do drive fewer miles than the national average of around 7400 miles, you may be eligible for low-mileage car insurance – which is generally cheaper than standard car insurance," he suggests.

Pay-as-you-go car insurance is another option for those who use their car more sporadically. These polices usually involve installing a device into your car that will track your miles – your quoted rate will be per-mile, and you’ll only pay for insurance when you drive (plus a fee to cover your car when parked).

Other versions of this policy allow you to select a number of miles for your policy from the start, such as 1000 miles and then top up your limit as and when you need to.

Some older drivers may even consider temporary car insurance, if they don’t want to own their own car but want to occasionally borrow someone else’s for short periods.

However, it can be hard to find temporary car insurance policies that allow for drivers over the age of 75, warns Campbell.

Other tips include increasing your voluntary excess, paying annually, driving a car from a lower insurance group and keeping up your no-claims bonus.

"By the time you’re in your 70s, you may have built up a healthy no-claims bonus. It can therefore be wise to pay for smaller repairs yourself in order to protect this."

Ask HJ

Does the owner of a car have to be named as the main driver for insurance purposes?

I am the owner and registered keeper of a Peugeot 107 that I have not used for over a year as I now have a new car. The Peugeot is in the garage, untaxed, uninsured, has no valid MoT and is SORN by the DVLA. My partner who is currently taking driving lessons and has a provisional driving licence wants to use the Peugeot once she has passed her theory and practical tests. Once she passes she will then use the car and be the one who drives it the most to work etc, although I will also use it occasionally. It can get a bit confusing when obtaining insurance quotes as to who is the main driver, named driver and registered keeper. Am I right in thinking that if my partner insures the Peugeot then she must be the main driver but I can be the named driver but I can still remain as the registered keeper? I've also noticed when trying to obtain an insurance quote it asks who the owner is, so is this me or my partner or is that the same as the main driver? It's all very confusing!

You’re right - your partner will have to be named as the main driver on the policy if they’re going to be driving the car the most. In terms of who officially owns the vehicle, you can remain as the registered keeper from an insurance point of view. But some insurer’s may not offer any cover due to potential complexities if you ever needed to make a claim. It’s not impossible though to get insured. Just make sure you’re accurate with all information you give and be wary that your options will most likely be limited if you decide to go down this route.

Answered by Louise Thomas

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