Can my age reduce my car insurance costs?

Benjamin Taylor | Edited by Luke Warren

Updated 20 September 2024

Age is one of a number of factors that insurers look at when calculating your premium – which is usually bad news for younger drivers who can be hit with much higher prices. Though as age is often a proxy for experience, premiums generally do come down the longer you've been driving (and driving well). Read on for more about how this works...

How does my age affect my car insurance?

Car insurance is typically more expensive for newer and younger drivers, as they present more risk.

Drivers who insurers think will be more likely to be in an accident or cause damage to another person's car or property will get a more expensive premium – as the insurance company will want to protect its profits.

Their estimation of risk will be based on a number of factors, but significantly age, experience and driving history are key. Young people are statistically more likely to be in an accident, and therefore will typically be offered more expensive insurance.

But – barring a history of claims or poor driving – car insurance tends to reduce in price over time as the driver becomes more experienced and (hopefully) builds a higher no-claims discount.

Yet as you reach 80+, this goes in to reverse, and your insurance then typically starts getting more expensive again. The rationale is that older drivers aged 80+ tend to be in more accidents.

Age isn't the only thing that affects your premium. Claims, changing your address or car type (and many more things) also have an effect. See our full What factors affect my car insurance quote? guide for more.

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Is car insurance more expensive for young people?

Usually, yes. Again it's due to the fact that younger, less experienced drivers are more likely to be in an accident.

While this may not be true for you on an individual basis, you don't yet have a record of good driving, so an insurer is more likely to hedge its bets and give you a higher premium.

The other reason why insurance is more expensive for younger people and newer drivers is that they haven't had the time to build up their no-claims discounts (also a called no-claims bonus) - this gives you a discount on your premium every year you don't make a claim. For more on this, see below, and for full help on bagging cheap cover if you're less experienced, see our Young drivers' insurance guide.

At what age do car insurance costs tend to drop?

Younger drivers usually pay the most for car insurance, but as we say above, once you start to build up a no-claims discount after a few years' driving, your costs should start to drop.

Typically you stop being classed as a 'young driver' at around age 25 by most insurers, which should start to be reflected in the price of your insurance.

Keep on top of your car insurance

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Want to know when YOUR cheapest time to get motor insurance is? The MSE App has a new tool called Bill Buster – give us a few details about your car insurance policy and we'll track it, then alert you when it's ending so you know when to start getting quotes to save.

Try it in the MSE App – available in Apple's App Store or Google's Play Store.

Is car insurance cheaper for older people?

It can be. Typically, if you stay claim-free, car insurance gets cheaper as you get older, but once you hit your 70s or 80s your premium may start to creep up again.

There's nothing stopping you from driving to your heart's content, and years of experience (and hopefully a decent no-claims bonus) should work in your favour when it comes to calculating your premium. But just like with younger drivers, statistical risk increases for older drivers.

It shouldn't be too steep, however, as older people typically have safer driving habits – such as driving shorter distances, at safer times of day and less often than younger people.

Is there anything I need to do as an older driver?

Your driving licence runs out when you hit 70, so you need to renew then, plus every three years after that. Thankfully this doesn't mean you need to retake your test – plus it's free to renew (there's a fee for under-70s).

Otherwise, if you do find your insurance creeping up and have been with the same provider for a while, your best bet is to compare premiums using our Car Insurance Compare+ tool. Insurers thrive on loyalty (or apathy) – so take action and switch. For full hints and tips, see our main Cheap car insurance guide.

Is there a maximum age for car insurance?

Not legally, but some insurers will set their own limits on who they will cover. So you may want to check with your insurer on this.

Will car insurance be more expensive if I have medical conditions?

Unfortunately, the answer is: maybe. If you develop any medical conditions at any time in your life as a driver, you need to inform the DVLA and your insurer. This could be anything that might affect your ability to drive, such as damage to your eyesight, dementia, epilepsy, chronic neurological conditions, dementia and so on.

Medical conditions don't necessarily mean you WILL have to stop driving and it's always essential that you're upfront about them. It may mean that your insurance premium could rise or that you might have to find a more specialised insurer. Yet if the condition is serious enough, there is a chance that the DVLA could take away your licence.

How do I get cheaper car insurance?

Though some of the impacts on price of being a younger or older driver are simply unavoidable for many, there are some ways you can reduce the burden.

For younger drivers, other than simply becoming more experienced and earning a higher no-claims discount, you could try some of the following MoneySaving tips:

Telematics. If you're confident you drive well, telematics insurance might save you money. They install a tracking device in your car called a black box, and base your insurance premium on how safely you drive.
Adding a second driver. Adding a more experienced driver to your policy could lower the price. It should be someone you know who might realistically drive the insured car, and can help to reduce the level of risk a provider perceives you to be.
Getting a quote 20 to 27 days ahead. There is a perfect time to get your policy – as our analysis of over one million quotes from January to April 2024 from MoneySupermarket showed a policy costs an average of £2,277 a year on renewal day. But 26 days earlier the average is just £906 a year, a MASSIVE £1,371 less.
Multicar. If your household or immediate family has multiple cars, you could save by getting multicar insurance. It's not always straightforward though, and could end up being more expensive – so for how to weigh up the decision, see our Multicar insurance guide.
Third-party cover's not always cheapest. You might think that comprehensive cover is always the most expensive, but it doesn't quite work that way... check the different levels of cover to see which is the cheapest for your circumstances.