Car insurance bombshell as one age group is paying huge amounts | Personal Finance | Finance

Older drivers are enjoying something of a golden age when it comes to car insurance costs with some paying up to £500 less than those who are newly qualified, new analysis suggests – but one group is paying far more.

According to Which?, drivers aged 65 to 74 currently benefit from the lowest average premiums at an average of £336, based on quotes from comparison site GoCompare.

Its consumer experts found that the youngest drivers (aged 17 to 24) pay the most for an annual policy, spending £825 a year for car cover.

Which? said: “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.”

Who’s paying what?

The analysis by Which?, using median premium data from GoCompare for the first three months of 2025, paints a revealing picture of how age affects insurance costs:

Age Group Average Premium (£)

17–24 £825

25–34 £532

35–44 £462

45–54 £400

55–64 £338

65–74 £336

75–84 £417

85+ £700

Source: GoCompare, Jan–March 2025. Based on median average car insurance quotes.

Why does age affect car insurance?

Insurers set premiums based on risk — and when it comes to driving, that risk is closely tied to age and experience.

Young drivers, particularly those in their first year on the road, are statistically more likely to be involved in a crash. Government data shows that in 2023, those aged 17 to 24 were involved in nearly a quarter of all road collisions, despite making up only 6% of licensed drivers.

By contrast, many older motorists have years of driving experience under their belt — but that doesn’t make them immune. The same figures reveal that around a quarter of all car drivers killed in 2023 were aged over 70, with common causes including failing to look properly or misjudging another driver’s speed.

That may help explain why insurance premiums jump to £700 after the age of 85 — a 78% increase from the 75–84 bracket.

Location and mileage matter, too

While age is a major factor, where you live and how far you drive also affects premiums.

Data from Confused.com shows that Inner London remains the most expensive region for car cover, with average premiums hitting £1,308. That compares to just £558 in South West England — the cheapest region in the UK.

Mileage is another key variable. Those driving fewer than 6,000 miles a year pay around £444 on average, compared to £488 for drivers covering up to 10,000 miles.

Which? has identified four ways to cut your car insurance bill

Whether you’re young, old, or somewhere in between, there are smart steps you can take to lower the cost of cover.

Shop around – Never accept your renewal quote without checking alternatives. Use comparison sites — but remember, some insurers like Direct Line and NFU Mutual don’t appear on them.

Limit your mileage – Lower mileage generally means lower premiums. Be honest though — inaccuracies could void your policy.

Pay annually – Monthly payments often come with added interest, making them more expensive over the year.

Haggle – Armed with cheaper quotes, you may be able to negotiate a better deal with your current insurer.

For more expert tips and guidance, you can visit Which? to compare insurance deals and read up on the best car insurers for 2025.