Older Cars Get Better Insurance Deals

Mon 29th Mar 2021

New research has found that those who choose to drive older cars are continuing to see better car insurance quotes with the costs falling year on year.

The sale of brand new cars over the last 12 months has fallen to its lowest level since 1992 according to data published by the Society of Motor Manufacturer and Traders, and further analysis from Compare The Market has found that those cars that are on the roads are more likely to be older.

The price comparison insurer’s research has found that seven in ten cars are more than five years old and close to four in ten are more than a decade old. While last year’s dip in new car sales was down to external pressures such as lockdown, the fact that many people are sticking with their old car suggests that we are getting more use out of them and they are more durable.

Those who choose to go with an older or used vehicle are much more likely to be rewarded when it comes to car insurance, with the average premium for a car more than 10 years old falling from £1,608 in 2019 to £1,521 in 2020. At the same time the yearly premium for a brand new car actually increased by £128. 

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.”