Drivers born before 1976 could significantly reduce their car insurance premiums by simply updating a single detail on their renewal form, according to experts. Motorists aged 51 and over who are driving less due to retirement or reduced hours may be overpaying if they haven't informed their insurer.
How Mileage Affects Insurance Premiums
Insurance premiums are calculated based on perceived risk, with annual mileage a key factor. Reducing mileage signals lower exposure to accidents, which can bring down costs. However, new data from Compare the Market reveals that nearly half (48%) of UK drivers aged 51 and over have never checked whether changes in their driving habits could lower their insurance costs.
The survey of 2,000 drivers aged 51 and over, conducted by Censuswide on behalf of Compare the Market in June, found that 32% of respondents were completely unaware that lifestyle shifts such as retiring, cutting back on annual mileage, or no longer commuting could impact their premiums.
Common Misconceptions About Updating Policies
Amy Rootham, car insurance expert at Compare the Market, stressed that many motorists could be charged based on circumstances that no longer reflect how they use their vehicle. She said: "As people move into retirement or start working fewer hours, their daily routines naturally change. For many, this means spending less time on the road, ditching the daily commute, and clocking up fewer miles. However, our research suggests that a large number of drivers are forgetting to pass this vital information on to their insurance providers."
According to the data, 19% of individuals polled did not update their car insurer after retiring or changing their work status. Meanwhile, 21% assumed that driving less or retiring would not make any difference to their insurance bills. A further 15% said retirement was the main reason their driving habits had changed, while 12% simply no longer commuted to work.
Updating Details Can Lower Premiums
Amy added: "It is also a common misconception that updating your details will automatically result in a higher premium. In reality, letting your insurer know that you drive less or have retired could actually bring your costs down."
Drivers born before 1976 are urged to review their policy and tick the box that reflects their current mileage and work status. This simple step could lead to substantial savings, especially for those who have reduced their driving due to retirement or lifestyle changes.
