We may not get a good deal when buying a car - as this week's figures from the European Commission demonstrate all too clearly. Popular models can still cost as much as 60% more in the UK than across the channel and, in some instances, the gap is widening.
However, you will do rather better when it comes to insur ance. The arrival of more new players is increasing competition in the market, as it did in the early 90s.
And people in their mid-50s to mid-60s are the main beneficiaries. Drivers in this age bracket are perceived to be the most responsible as well as the most experienced drivers so they are specifically targeted by insurers.
An added factor is that, if you've retired, the insurers reckon your annual mileage will also drop. The premiums you pay will be the lowest of any age group and if you're married they will be lower still.
But things change when you hit your late 60s. At this point, insurers argue, claims frequency tends to rise, even for careful drivers, as reactions become slower and mobility is reduced. Premiums often go up by around £100 between 65 and 75 and by a further £100 over the next five years, with men paying slightly more than women.
And though older drivers who maintain a good driving record should not automatically suffer significantly higher premiums, their choice will be limited as many insurers will not provide cover for those aged 75 and over, while others will only insure existing customers once they hit 75.
As with any financial product, shop around as it's often possible to cut a fifth off your existing premiums. But with the plethora of insurers now in the market that can be a tough task unless you have internet access.
It's worth calling a few insurance brokers - don't restrict yourself to one, as each one has links with a different range of insurers. It is also worth going back to your insurer to see if it will match the deal. New players such as Tesco, which joined forces with Direct Line two years ago to offer car insurance, and Esure, a joint venture of the Halifax and Peter Wood, the founder of Direct Line, may offer cheaper deals.
Esure, which entered the market last summer, is currently deemed to be the cheapest. It claims to offer savings of up to 30% but will only insure drivers with at least four years' no claims discount and won't insure anyone aged 75 or over unless they're an existing customer.
The upside for safe drivers is that the no claims discounts it offers are generally higher than its competitors - 70% for five years, rising to 75% after 10 years.
It is essential to compare like with like and check out all the terms and conditions. Cheaper premiums don't necessarily mean that you're getting the best cover.
Check that the insurer offers accident recovery with a free lift home, whether you've had an accident or fallen ill at the wheel, and that it will cover radios as well as providing free accident helplines and legal advice.
Other useful extras are courtesy cars and, if you're retiring, transferring your no claims record for company cars to your private policy.
