Older drivers can cut their annual car insurance bills with one simple tip, according to leading experts. Overestimating car mileage is one of the easiest ways motorists overpay for cover, with road users often travelling much less than they initially predicted.
Older drivers tend to travel less than younger road users, meaning reducing the estimated mileage on insurance cover could massively pay off. Analysis from Taking Care Personal Alarms suggests that the average annual mileage for drivers aged 70 or older was just 1,665 miles.
In comparison, the average annual mileage in the UK is around 7,400 miles, with commuters driving around 2,300 miles per year just to get to work.
Age UK said: “Insurance providers generally want to know how far you drive every year. This is because the price of insurance is based on how likely it is that a claim will be made – a higher likelihood can contribute to a higher price for cover.
“For example, a person who drives 30,000 miles a year is more likely to have an accident than someone who only drives 6,000 miles a year due to probability alone. Therefore, when estimating your annual mileage, try to get it as accurate as possible and don’t overestimate it by too much.”
Mileage is a key factor in calculating premiums, with higher mileage drivers considered to be a much higher risk. Motorists can usually update their mileage details online within just a few minutes, making it a hassle-free way to save money.
Some insurers may charge road users an admin fee to process the change, ranging from approximately £15. Data from Compare the Market shows drivers between the ages of 70 and 79 are paying roughly £334 per year for comprehensive cover.
This was slightly more than road users aged between 60 and 69, who are charged £307 on average. However, Compare the Market also explained the importance of updating mileage to reduce costs.
It said: “If you’re driving less due to retirement, shorter working hours or any other reason, your lower annual mileage could help cut the cost of your car insurance. Just remember that you must be honest about how many miles you’re driving.”