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Pensioners face being driven off the road by rising car insurance prices – exact date to renew can cut costs by 45%
Watch our video above for ways to cut the cost of your premium
PENSIONERS are facing soaring car insurance costs - but can save up to 45% if they renew their policy at the right time.
Data from Quotezone reveals older motorists are being stung by rising premiums.
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The comparison site said those aged 65 and over saw their premiums increase by 43% between January 2023 and January this year.
It means the average policy for the age group has gone from £334 to £478 in just 12 months, as pensioners face other cost pressures from high energy and food bills.
Greg Wilson, chief executive of Quotezone, said: "These older drivers are predominantly living on pensions which are being stretched due to cost of living side effects – such as escalating energy bills and grocery costs, making this additional pressure a real concern.
"Although car insurance is normally at its lowest for this particular age group and well below the general UK average premium of £956, car related expenses such as fluctuating fuel costs and hikes on repair and maintenance bills, are creating a challenge for older people to keep up with."
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However, older drivers under financial pressure can fork out less on premiums by signing up for a new deal on an exact date.
Quotezone says most drivers renew their policies at the worst time - days before their current one is about to expire.
But you can cut costs by between 33% to 45% by getting a quote for a new premium 15 to 24 days before your existing one is due to finish.
Mr Wilson added: "Drivers generally get notified a month before the policy is about to expire, and that's the perfect time to start shopping around and comparing different providers.
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"Even if they stick with their current insurer, obtaining quotes from other companies may still help them save money by giving them the tools to negotiate and helping them check they're not over or under insured."
See the map below for how much car insurance quotes were on Quotezone's website for over 65s in January 2024 based on your area.
Quotezone's data shows older drivers are forking out vastly different amounts on their car insurance based on where they live too.
It reveals pensioners are facing a postcode lottery when it comes to how much they were quoted between January last year and the same month this year.
It found the average car insurance premium quote for over 65s was highest in London, with drivers paying £659.84 a year.
Next was the West Midlands where motorists were asked for £513.43 over the same 12-month period.
Bottom of the pile was Wales, where drivers would have paid just £404.95 - £254.89 less than in London.
The latest data from the Association of British Insurers, which represents industry, shows a slower increase in the amount all drivers paid for premiums between the start of 2023 and this year compared to what Quotezone said the difference was for older drivers over the same time period.
These figures are based on the premiums motorists actually paid though - not quotes, which don't always take into consideration all of your personal circumstances when searching for a deal.
Some comparison sites don't include deals from all insurers either.
What is car insurance?
HERE'S everything you need to know...
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property - these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don't have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don't need to insure your car if it is classed as "off-road", or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
This can effect what you end up paying when it comes to actually agreeing to a policy.
Last month, its latest data revealed the average motor insurance policy rose from £478 in the first three months of last year to £635 for the same period this year - a rise of 33%.
Either way, drivers, old or young, will save money by renewing their policy at the right time.
Other ways to cut car insurance costs
Choosing the right date to renew your car insurance policy is just one quick way to slash costs.
Using a price comparison site allows you shop around for the best deal for your circumstances ahead of renewal.
You can use Quotezone's tool, but there are plenty of other websites available including Uswitch, Moneysupermarket and GoCompare.
Knowing the best possible deals out there helps you haggle your current provider's price down too, if you think they're asking too much.
And worse-case scenario, if your current provider decides they don't want to lower their offer, you can ditch it and go for a new one.
Never let your policy auto-renew either - this will most likely see you forking out too much.
Insurers rely on drivers being inactive and not coming to them ahead of a policy renewing with a lower price.
Another way to cut the cost of your car insurance is by paying annually instead of monthly.
It means having to cough up all the money in one go, but it means you won't be lumped with interest on any monthly payments.
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You can also up your excess, which means you'll have to pay out more in the eventuality of an accident.
But it will drive your overall policy price down as you are taking on more responsibility from the insurer.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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