Reaching retirement can bring many benefits, but nearly half of older British motorists are potentially missing out on cheaper car insurance.
New research by Compare the Market finds that almost half (48 percent) of drivers aged 51 and older could be overpaying for their car insurance premium.
These motorists have never checked whether changes in their lifestyle, such as retiring from work, have an effect on the amount they pay for car insurance.
Along with having an impact on the price paid, drivers who fail to declare themselves as retired could also have issues with the validity of their insurance, due to withholding important information.
Older drivers potentially pay too much
Close to a third (32 percent) of those surveyed by Compare the Market admitted they were ‘completely unaware’ that insurance premiums could be affected by lifestyle changes.
They also did not realise that becoming retired, reducing their annual mileage, or no longer using a car to commute would affect the price they paid.
The research found that 19 percent of older drivers did not update their car insurance company after retiring or changing their work status.
Some 21 percent assumed that driving less frequently, or becoming retired, would not change the cost of their car insurance.
Compare the Market also learned that retirement was the main reason for 15 percent of motorists changing their driving habits, with 12 percent no longer needing to commute.
Keep your car insurer fully informed
Allowing car insurance policies to automatically renew, often for the sake of convenience, can result in lifestyle changes not being captured.
As a result, drivers should fully check their policy before agreeing to renew, and make any changes as required.
Amy Rootham, car insurance expert at Compare the Market, 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.
“Failing to update your policy could mean you’re paying a premium based on circumstances that no longer reflect how you use your car. For instance, commuting adds to your premium, so if you are only using your car for social and leisure purposes, you should let your insurer know.
“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.”
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