Drivers over the age of 65 in England must now pay £431 annually to legally stay on the roads, according to an analysis of car insurance premiums for the second quarter of 2026. This represents an increase from £407 in the first quarter of the same year.
Rising Premiums Across Age Groups
While premiums for young drivers remained relatively stable overall, a notable exception is 17-year-olds in London, whose average premium jumped from £2,555 to £2,928. This means newly qualified young drivers in the capital now face insurance costs of nearly £3,000 a year.
Young Drivers Still Hit Hardest
Across all age groups in England, drivers aged 17–24 face the highest annual premiums, with average costs of £1,099. Despite the stability in many young driver categories, the overall trend shows a reversal of previous declines.
Greg Wilson, CEO and car insurance expert at Quotezone.co.uk, commented: “The increase marks a reversal of the downward trend seen over the past few years, during which average premiums had fallen steadily since the peak at the end of 2023. It’s disappointing to see price increases after a prolonged period of steady decline, especially when motorists have been faced with rising fuel prices over the last few months.”
Reasons Behind the Rise
Wilson attributed the increases to a rise in claims costs and growing technology that makes repairs and new parts more expensive. He noted that all age groups except young drivers have seen price increases, which may be due to the rise of telematics products making premiums more affordable for that group.
Tips for Reducing Costs
Wilson advised motorists to shop around before renewal, avoid automatic renewals, check annual mileage accuracy, and pay annually where possible to secure savings.
