Do older drivers really pay more for car insurance?

Many older drivers are paying less for car insurance than those in their 30s and 40s, Which? analysis of GoCompare data found.

The comparison site figures – based on quotes  – show motorists aged 65 to 74 actually have the cheapest average annual premium, with the cost of cover for a 75 to 84-year-old still lower than a driver in the 35 to 44 age group.  

Although prices rise steeply after 85, the data suggests older drivers may not be as hard hit by car insurance costs as commonly thought. 

Here, we dig into the data to reveal the impact age has on the cost of car insurance and explore what you can do to reduce your premium. 

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Who pays the most for cover? 

Younger drivers usually face some of the highest premiums. With age and more experience, the price of insuring your car gradually decreases. 

You'd expect to see cover jump again once you reach retirement age and insurers take into account increased age-related risks. But when we looked at GoCompare data from the first three months of 2025, we found premiums don't increase dramatically until a driver is well into their 80s.

This table shows how the average cost of an annual car insurance policy differs according to how old you are:

As you can see, the youngest drivers (aged 17 to 24) pay the most for an annual policy, spending £825 a year for car cover. 

Costs drop sharply once a motorist celebrates their 25th birthday and hit a low of £336 once a driver is aged 65 to 74. 

The average premium rises to £417 once you hit 75 to 84, but this is still almost 10% less than the £462 spent by those in the 35 to 44 age group.

The average premium doesn't rise significantly until you reach 85. After which it rockets by 78% to £700.

• Find out more: best car insurance companies

Why does age matter?

Sadly, when it comes to the cost of car insurance, age and experience matters. Drivers who haven't been on the road for long are considered more likely to be involved in a car accident, so providers up their premiums to account for that increased risk.  

For example, the latest government figures show that, in 2023, young drivers (17-24) were involved in nearly a quarter of all road collisions in the UK. They represented 18% of car drivers killed or seriously injured, even though they make up only 6% of licensed drivers. Roughly 20% of new drivers are involved in a crash within their first year of driving. 

The same data also shows that around a quarter of all car drivers killed in 2023 were aged over 70. The most common contributory factor involved in fatal or serious collisions was the 'driver failed to look properly' followed by 'driver failed to judge another person’s path or speed'.

The sharp increase in premiums for those over the age of 85 therefore highlights how insurers also take age-related risks, such as slower reaction times or health concerns, into account for drivers of this age.

• Find out more: how to find cheap car insurance 

What else impacts premiums?

Where you drive your car also makes a difference to how much you pay for insurance.

Data from Confused for the fourth quarter of 2024 shows that Inner London is the most expensive place to insure your car, with quoted premiums costing an average of £1,308. That is more than double the average cost of a premium in South West England (£558), where drivers pay the lowest car insurance premiums in the UK.

A separate report by GoCompare also shows that mileage impacts the cost of insurance too. Those driving up to 6,000 miles pay an average of £444 for their premiums compared to £488 paid by those driving up to 10,000 miles.

• Find out more: the different types of car insurance explained

4 ways to reduce the cost of cover

Age and experience will always affect the price of cover, but there are some ways you can reduce costs, no matter how young or old you are.

1. Shop around

This should always be the starting point when looking for the best price and cover to meet your needs. 

Price comparison sites such as Compare the Market, Confused.com, GoCompare and MoneySuperMarket allow you to view multiple car insurance quotes at a glance. Just remember, not all insurers are on price comparison websites: Which? Recommended Providers Direct Line and NFU Mutual are examples of this.

If you are an older driver, take a look at our guide for car insurance for the over-50s.

• Find out more: the insurers you won't find on comparison sites

2. Keep mileage down

Less mileage equals lower risk to insurers and therefore cheaper cover. So try to limit the miles you clock up over the year if you can.

But be honest about it. Lying could lead to your policy being invalidated.

3. Pay annually rather than monthly

Choosing an annual policy could save you hundreds of pounds. Insurers tend to charge monthly payers interest, which means the policy will be more expensive overall compared to paying upfront.

• Find out more: insurance prices still too high for pay-monthly customers

4. Haggle for a better price

You might be able to get the price down by haggling.

Do your research first and come to the negotiation table armed with any cheaper quotes for the same level of coverage. You may find an insurer is happy to give you a discount rather than lose a customer to a rival company.

• Find out more: our car insurance haggling script