Research for Compare the Market reveals that almost half (48%) of UK drivers aged 51 and over have never checked whether changes in their driving habits could reduce their car insurance costs, meaning millions could be overpaying on their premiums.
The survey highlights a knowledge gap among drivers transitioning into semi-retirement or retirement. In fact, 32% of respondents were completely unaware that lifestyle shifts like retiring, reducing annual mileage, or no longer commuting could affect their premium prices.
The research also found:
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19% did not update their car insurer after retiring or changing their work status
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21% assumed that driving less or retiring would not make a difference to their insurance cost
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15% cited retirement as the main reason their driving habits have changed, while 12% simply no longer commute
Amy Rootham, car insurance expert at Compare the Market, says:
“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.”
Amy has shared a simple checklist to help make sure your insurance reflects your current lifestyle:
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Reassess your annual mileage: If you are no longer commuting, your annual mileage has likely dropped. Be honest with your insurer about how many miles you expect to drive, as accurately reporting a lower mileage could reduce your premium.
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Update your employment status: Retiring is a major life event, but it is also an important detail for your insurer. Make sure your occupation status is updated to ‘retired’, as this could affect your insurance.
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Check your vehicle usage class: If your policy is currently set to include ‘commuting’, but you only use the car for shopping and visiting friends, switch your usage class to ‘social, domestic and pleasure’.
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Review where you park: If you are spending more time at home, you might now be parking your car on a driveway or in a garage rather than on a busy workplace car park. Updating this detail could lower your risk profile.
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Do not auto-renew without checking: It is always worth comparing quotes when your renewal comes up. Ensure all your details are completely up to date before accepting a renewal offer to guarantee you get the most accurate and competitive price.
