COST OF INSURANCE FALLS FOR OLD BANGERS AS BRITS KEEP CARS FOR LONGER
- Cars older than 10 years are £87 cheaper to insure than previous year, whereas the average premium for new cars increased by £128
- Almost four in 10 cars on the road (38%) are more than 10-years-old - these cars cost an average of £1,521 to insure
- 36-year-old bangers are typically the most expensive to insure, with an average premium of £1,953 per year
- Morris Minors, Volkswagen Beetles, and Land Rovers are the most popular cars over 50 years old
27 April 2021: The average cost of insurance for older cars fell by £87 in 2020 as more drivers kept their existing cars rather than upgrading to a new model according to research from comparethemarket.com. Cars normally become more expensive to insure as they get older, however, the pandemic has caused a decline in premiums which has offset the usual increase.
In 2020, the average premium for a car that is more than 10 years old declined to £1,521 , from an average of £1,608 in the previous year. In contrast, over the same period, the average premium for new cars increased by £128 to reach £1,212.
More people have chosen to stick with their current vehicles as new car sales have slumped during the pandemic; last year saw the lowest new car sales since 1992 , according to figures from the Society of Motor Manufacturers and Trades (SMMT). As a result, comparethemarket.com research also found that seven in 10cars (69%) on the road are now more than five years old, and nearly four in 10(38%) cars are more than a decade old.
Last year, the most common age for a car on UK roads was four years old, with a typical premium costing £1,066. This is marginally lower than in 2019 when a premium for a four-year-old car would have cost an average of £1,102.
AVERAGE PREMIUM BASED ON THE AGE OF THE CAR
|Vehicle age (years)||Average premium|
Cars manufactured 36 years ago are typically the most expensive to insure with an average premium of £1,953. Older cars can be more expensive to insure as they are more likely to break down and lack the improved safety features found in newer vehicles. After this peak, average premiums then decline for older cars. This happens as cars gradually change from being day-to-day vehicles to ‘classic’ cars owned by collectors, which are typically driven less. On average, cars that are 50 years old are £179 cheaper to insure than those which are just 15 years old. For more information on insurance considerations for classic cars, see here.
Based on comparethemarket.com proprietary enquiries data, the most popular 50 year old cars to insure are Morris Minors, followed by Volkswagen Beetles and Land Rovers. Of the top 10 most popular cars, premiums for Mustangs are the most expensive costing £2,712. Premiums for MGBs are typically the cheapest costing just £621.
Dan Hutson, head of motor insurance, comparethemarket.com, said:
“New car sales have practically ground to a halt during the pandemic as showrooms have been forced to close, people have not been using cars to commute and many drivers have been under more financial strain. These conditions mean the average age of cars on the road is increasing as most drivers are content to delay buying a new car until the economic situation is more certain.
“The good news for most drivers is that average premiums for older cars are falling year-on-year. To take advantage of these savings, motorists must remember to shop around for the best deal when their policy comes up for renewal. If drivers have automatically renewed their policy for a few years in a row, they may find they are paying substantially more than they need to for their car insurance.
“For anyone planning to channel their inner Steve McQueen by buying an old Mustang or another classic car, it is a good idea to check the cost of the insurance beforehand. Premiums can change significantly by the year of the car’s production or between similar models. Given these vehicles can often have steep maintenance or repair costs, drivers should look to save as much as possible on the cost of their insurance.”
MOST POPULAR CARS OVER 50 YEARS OLD
|Volkswagen Beetle 1300||£994|
|Land Rover 88||£1,056|
|Land Rover 88 Diesel||£1,617|
|Ford Mustang (LHD)||£2,712|
|Triumph Herald 13/60 Convertible||£742|
MOST POPULAR CARS OVER 20 YEARS OLD
|Mazda MX-5 Cabriolet||£1,994|
|Toyota MR2 GT||£2,016|
|Volkswagen Golf GTI||£1,811|
|Volkswagen Polo CL||£1,509|
|Land Rover Discovery TDI||£1,865|
|Mazda Eunos Cabriolet||£2,005|
|BMW Z3 2.0 Convertible (140 bhp)||£1,320|
|Mazda MX-5 Cabriolet (130 bhp)||£1,977|
CHEAPEST CARS TO INSURE OVER 20 YEARS OLD
|Toyota RAV4 Gx||£327|
|Mercedes-Benz SLK Convertible||£338|
|Land Rover 90 Defender County TDI||£417|
|Nissan Almera Ambition||£488|
|Fiat 500 L||£561|
|Jaguar XK8 Convertible Auto||£582|
|Fiat Punto 60 SX||£603|
|Triumph Stag Auto||£611|
|Alfa Romeo Spider Lusso TS Cabriolet||£633|
|Land Rover110 TDI County||£634|
Premiums are based on comparethemarket.com enquiry data for drivers in 2020.
comparethemarket.com was launched in 2006 and has grown rapidly over the past fifteen years to become one of the UK’s leading price comparison websites.
comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.
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comparethemarket.com is a trading name of Compare The Market Limited. Compare The Market Limited is authorised and regulated by the Financial Conduct Authority for insurance distribution (FRN: 778488) and is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 911617) for the provision of payment services.