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COST OF INSURANCE FALLS FOR OLD BANGERS AS BRITS KEEP CARS FOR LONGER

Published: 27/04/2021
  • 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 
0 £1,212 
5 £1,089 
10 £1,144  
15 £1,364  
20 £1,417  
30 £1,775  
40 £1,599  
50 £1,185  

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 

Model Average premium 
Morris Minor  £1,185 
Volkswagen Beetle 1300  £994 
Land Rover 88  £1,056 
MGB  £622 
Land Rover 88 Diesel  £1,617 
Triumph Spitfire  £1,389 
MG Midget  £782 
MGB GT  £1,226 
Ford Mustang (LHD)  £2,712 
Triumph Herald 13/60 Convertible  £742 

MOST POPULAR CARS OVER 20 YEARS OLD 

Model Average premium 
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 Bongo  £903 
Mazda Eunos Cabriolet  £2,005 
BMW Z3 2.0 Convertible (140 bhp)  £1,320 
Mazda MX-5 Cabriolet (130 bhp)  £1,977 
Toyota MR2  £2,050 

CHEAPEST CARS TO INSURE OVER 20 YEARS OLD

Model  Average premium 
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  

Notes 

Premiums are based on comparethemarket.com enquiry data for drivers in 2020.  
 
About comparethemarket.com 

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. 

comparethemarket.com actively works with its brand partners to help provide great services to customers. 

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.