Owners of older cars take advantage of lower insurance rates

Owners of older vehicles have benefited more from falling insurance prices than new car drivers, according to a new study. A study by the price comparison site CompareTheMarket.com found that insurance premiums for vintage cars fell by around £ 90 in 2020, while the average premium for new cars increased by almost 130 £.

Data from CompareTheMarket.com shows that four in 10 cars on UK roads (38%) are now over ten years old, and seven in 10 (69%) cars are now over five years old. CompareTheMarket.com says older vehicles are generally more expensive to insure because they are more likely to break down and lack the latest safety innovations, but the pandemic appears to have narrowed the gap.

According to the figures, the average premium for a car over 10 years old fell to £ 1,521 in 2020, down £ 87 from an average of £ 1,608 the year before. Over the same period, the average premium for new cars increased by £ 128 to reach £ 1,212.

The price comparison site says the pandemic has seen drivers hang onto their vehicles, with fewer new cars purchased. Figures from the Society of Motor Manufacturers and Traders (SMMT) seem to confirm this, with new car registrations down nearly 30% in 2020.

CompareTheMarket.com estimates the average car on UK roads to be four years old, and these cars have seen their average insurance premiums drop very slightly. In 2019, the average four-year-old car would have cost £ 1,102 to insure, but that amount fell to £ 1,066 in 2020.

“Sales of new cars have all but come to a halt during the pandemic as showrooms were forced to close, people did not use cars to get around and many drivers were under financial pressure more important, ”said Dan Hutson, auto insurance manager at CompareLeMarché.com. “These conditions mean that the average age of cars on the road is increasing as most drivers just delay buying a new car until the economic situation is more certain.

“The good news for most drivers is that the average premiums for older cars are going down year on year. To take advantage of these savings, motorists should remember to look for the best deal when renewing their policy. If drivers have automatically renewed their policies for a few consecutive years, they may find that they are paying a lot more than they need for their auto insurance.

“For anyone considering channeling their Steve McQueen interior into buying an old Mustang or other classic car, it’s a good idea to check the cost of insurance beforehand. The premiums can change considerably depending on the year the car was produced or between similar models. Since these vehicles can often have high maintenance or repair costs, drivers should seek to save as much as possible on the cost of their insurance. “