The average driver (67%) spends up to £2,999 every year on their car*, according to latest research** from Age UK Enterprises, the commercial services arm of Charity Age UK. While price is the most important factor when choosing a car with one in four (23%) opting for the cheapest, most drivers then spend a significant amount every year running it.
The UK is a nation of car owners with two thirds of all adults owning a car. This increases with age with four out of five (81%) of 55 to 64 year olds owning a car. Men (69%) are only 5% more likely to own a car than women (64%).
The costs of owning a car can account for a significant proportion of annual outgoings, but most drivers fail to do the simple things that could help save money, such as shop around when buying car insurance. Two thirds (63%) admitted staying with their current car insurance provider the last time they renewed their policy. This percentage increases further with age, to 70% for the 60 plus, as older drivers tend to be even more loyal and less likely to shop around for the best deal.
Gordon Morris, Managing Director of Age UK Enterprises, said: “Despite the economic downturn, the UK remains a nation of car owners with those in later life the most likely to have a car whilst spending a significant amount every year maintaining it. While consumers are cautious about price when they buy their car, too often they don’t take action during its lifetime that could save them money.
He continued: “With the cost of running a car soaring every year, we encourage every driver to review what they currently spend on their car, and particularly their insurance cover. Consumers must shop around and ensure they have the information they need to make an informed choice, buying only what provides best value and appropriate cover for their needs. However, they also need to consider that some providers offer low initial prices which then rise sharply on renewal or come with high excess, making the need to shop around even more essential. ”
Age UK is committed to helping older people make the most of their money and the motor insurance product is designed to best meet the needs of those in later life, offer value for money and excellent customer service. The Age UK Car Insurance has no upper age limit, or hidden fees whilst also offering a no claims discount option. Customers can pay by monthly instalment at no extra cost. In the event of an accident a message relay service is also available meaning a friend of relative can be contacted so they are aware of the customer’s situation. All this helps to ensure that with people living longer and healthier lives adequate motor insurance cover is available to help people enjoy their retirement.