Cost of insurance for older cars falls as drivers hang onto vehicles longer
Average cost of cover has continued to fall for cars aged over 10 years.
Average car insurance premiums for older cars have continued to fall as many motorists choose to hang onto their vehicles for longer.
Data revealed by comparison site Compare the Market shows that the average premium for a car more than 10 years old fell from £1,608 in 2019 to £1,521 in 2020. In contrast, an average yearly premium for a new car increased by £128 to a total of £1,212.
Many drivers have chosen to keep their older cars during the pandemic, with Society of Motor Manufacturer and Traders (SMMT) figures showing that last year’s new car sales were the lowest since 1992.
Compare the Market’s research also found that seven in 10 cars on the road today are more than five years old, while close to four in ten are more than a decade old.
Dan Hutson, head of motor insurance at Compare the Market, 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.”
The lowest premium based on the age of car – according to the figures released today – is £1,089 for cars aged five years, while the highest applies to cars that are 30 years old. They command an average of £1,775 to insure.
Based on Compare the Market’s data, the most popular 50-year-old cars to insure are Morris Minors, followed by Volkswagen Beetles and Land Rovers.
