MORE than three-quaters of drivers buy or lease a different car when they retire, according to research by Age UK Somerset.

And nearly nine out of ten of those vehicles are either smaller or the same size as their previous one, while 53% opt for economical city hatchbacks, such as a Citroën C3 or Vauxhall Corsa.

When it comes to deciding which car to get, the majority are opting for cars which are more fuel efficient (53%), less expensive to run (37%) or easier to drive (31%).

The cost of car insurance is another key consideration, with nearly half (49%) stating they checked the impact their decision would have on the price of their car insurance.

Age UK Somerset offers the following tips for those thinking about changing their car at retirement.

•Consider how your needs may change - 31% of later life drivers see vehicle accessibility as a top priority when purchasing or leasing a different vehicle in retirement. So consider if a vehicle set slightly higher or lower would be more suitable.

•Think about how you will be using your car. Retirement means you won’t be doing the same commute anymore, so you may see you mileage drop unless this is balanced out by driving more for leisure. This will be important when estimating how much your insurance will cost.

•A top priority when shopping around for a different vehicle is the cost of insurance, finding this out before you purchase or lease a car will prevent any nasty surprises.

•An important part of this is to consider the number of named drivers on your insurance policy, especially if you are planning on downsizing the number of vehicles in your household. In some instances, adding a named driver to your policy will reduce the cost as the risk is reduced.

•It is also important to check the small print in your existing insurance policy for any hidden fees.

John Alexander, Age UK Somerset, said: “This research shows how important it is for those in retirement, many of whom are on fixed incomes, to think ahead about managing their finances.

"While many are being canny and thinking through the practicalities of driving in retirement, and making the decision to purchase or lease a new car to help with this, it’s also important to consider how this might affect car insurance costs.

"To help minimise the potential for increased cost, it’s worthwhile dealing with a car insurer who offers fairly priced premiums and does not impose age limits or hidden admin fees for such things as changing an insured vehicle.”