Over 50s car insurance

Car insurance premiums are based on various things including your age, driving history, car and where you live.

Risk is a key factor for insurance providers when it comes to working out what you should pay.

If you’re over 50, it’s assumed that you’re a lower risk because you’re likely to be a more experienced driver. Plus, there’s a good chance you’ve built up some no claims discount.
 
Insurance providers also consider the value of your car and where you keep it.  
 
Your home address is important, too. If you live in an area with a high car crime rate, you’ll typically pay more for your insurance.  
 
Once all these factors have been considered, Insurance Premium Tax (IPT) is added on. Standard IPT is currently 12%. 

Usually, you can expect your car insurance premiums to get cheaper as you get older. This is because you have more driving experience, which should make you safer on the roads. However, there are some reasons why you might end up paying more.

For example, during your many years driving, you may have picked up a few driving convictions, points on your licence etc. These must always be declared when getting insurance, so you’ll usually be forced to pay more in premiums, because there’s evidence you’re at a higher risk of making a claim.

As you get older, you might find that your mileage increases. This could be a longer commute to work after you’ve moved to a bigger house in the country, or you’re playing taxi driver to teenage children. Simply put, the more mileage you rack up, the higher the chance you have of being in an accident, which means your premiums could go up.

Finally, once you reach a certain age (such as 70 or 80), insurance providers start to naturally consider you a higher risk once again, because of your age.

No, you shouldn’t need a health check for over 50s car insurance. However, if you have developed a medical condition, or know about a pre-existing medical condition that affects your ability to drive, you’ll need to declare it to both the DVLA and your insurance provider. While this might mean your premiums go up, failing to do so can result in a fine of up to £1,000 and even prosecution if you’re involved in an accident.

Here are some top tips that could help you save money on your over 50s car insurance premium:

• Avoid auto-renewal – allowing your policy to automatically renew might seem like the easy option, but it may mean you’re paying more than you need to. Shopping around is a great way to compare what else is out there. 
• Think carefully about optional extras – optional add-ons such as courtesy cars or breakdown cover can hike up the price of your premium. Consider if you need these and whether they’re worth the extra cost for you.  
• Increase your car’s security – keeping your car somewhere secure overnight, or investing in an industry-approved alarm system or immobiliser, could reduce the risk of your car being stolen or vandalised. This, in turn, could cut the cost of your premium. Talk to your insurance provider about possible savings.
• Reduce your mileage – all insurance providers will ask for your annual mileage. To help keep premiums down, try to set this as low as possible. But remember, you’ll need to give an accurate reflection of your miles. If you significantly underestimate your mileage and have to make a claim, your policy could be invalid.
• Tweak your voluntary excess – increasing your  voluntary excess could mean a cheaper monthly premium. Just make sure you can pay both the compulsory excess set by your provider, and your chosen voluntary excess, should you need to make a claim.
• Pay upfront – paying for your insurance as an annual lump sum could save you a few pounds. That’s because you’ll often be charged interest if you choose to pay in 12 monthly instalments.