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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DMHZX You are correct the crooked insurance companies are always looking for ways to avoid paying out. This latest scam of cutting the price to the people who are the biggest risk and loading the people who don't shop usually around is obviously the latest way of picking older drivers pockets. Always shop around every year dont pay the joke prices that the insurance companies send out.
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@amwell44 Can't be that sophisticated when their reaction is to pass the shortfall onto the time proven safer drivers. A H
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DMHZX - insurance companies are not a'bunch of crooks', as a matter of fact. They are a regulated industry , many of whose employees belong to and are qualified through, a professional association. The key to understanding motor insurance is accident rates (including more than occasional fraud), costs (repair, car hire and legal) and competition. It is a sophisticated business model.
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29 June 2015