Car insurance falls "at expense of older motorists"
Older drivers are paying the price for premium reductions for younger drivers.
The price of car insurance for older motorists has increased to offset cheaper premiums for younger drivers.
New figures from the Consumer Intelligence Motor Insurance Index revealed that premiums for drivers aged 50 and over have risen by 5.2% since May 2014, while drivers under 25 have seen a 10.3% cut.
Over the longer term, premiums for younger drivers have fallen by 23.7% since October 2013, compared to an average of 2.9% for all motorists.
Unfortunately, premiums for drivers over 50 have increased by 7.9% over that same time period.
Ian Hughes, chief executive of Consumer Intelligence, said that the price falls for younger drivers seemed "to be at the expense of older motorists".
The power of telematics
The falling price of insurance for younger people is partly down to a greater number of telematics policies being sold, according to Hughes. These policies involve a black box being fitted to your car, which monitors your driving. If you prove that you are a safe and careful driver, your policy will get cheaper. For more, read How a black box can cut the cost of your car insurance.
British Insurance Brokers’ Association (BIBA) research found a 9% increase in policies to 323,000 over the last 18 months.
But even after all that, younger people can still expect to pay more for car insurance.
The average cheapest policy in May was £677, but for the under-25s it jumped to £1,628. Motorists aged 25-49 pay an average of £457, while the over-50s enjoy an average cheapest premium of £247.
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