New research reveals older drivers have seen a huge increase in premiums over the last year. But who is paying the most?
Older drivers have seen the biggest car insurance premium price rises year-on-year, while younger drivers have enjoyed significant price drops according to the latest study from Consumer Intelligence.
Motorists aged 50 or over have seen premiums jump by a whopping 8.6% over the last 12 months, while those aged 25 to 49 saw premiums rise 7.4%.
However, younger drivers have had a much better time of it – motorists under the age of 25 have seen average premiums drop by more than 10% since last August.
Telematics insurance – also known as black box car insurance – is a big factor in this decrease for younger drivers. These boxes monitor how you drive, and if you prove that you are a responsible driver you will see premium reductions.
As a result they have been very popular with younger drivers. According to Consumer Intelligence, a little under half of the most competitive quotes for under-25s come from telematics insurers. Read Driving apps that could save you money for more on how this works.
Ian Hughes, chief executive of Consumer Intelligence, said that such innovation was helping to reverse the massive premium increases young drivers have seen since the turn of the decade.
He added: “Older drivers are to an extent helping to fund the premium reductions for younger motorists and need to ensure they are receiving the best value for money from their insurer.”
Older drivers still pay less
While younger drivers have seen their average premiums drop sharply over the last 12 months, they are still paying far more for their car insurance than older motorists.
According to Consumer Intelligence, the average cheapest premium across the month for drivers under 25 was an incredible £1,680. In contrast, drivers aged 25-49 are paying £481, while those aged over 50 are handing over just £258.
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[SPOTLIGHT]No matter what your age, there are lots of things that you can do to ensure that you don’t pay through the nose for your car insurance.
Perhaps the most important thing to do is shop around for car insurance quotes, rather than simply renewing with your existing insurer. New customers always get the best offers, so sticking with your current insurer is almost certainly going to cost you.
Use the loveMONEY car insurance engine to see what deals you can get, but also get quotes from insurers like Aviva and Direct Line who don’t appear on price comparison sites.
Playing around with your excess can make a real difference to your premium too – the higher the excess, the less you’ll pay each month. Just don’t get carried away and commit yourself to an excess that you can’t afford.
Improving the security of your car, whether that’s adding an immobiliser or parking it somewhere safe like off-road or in a garage, will also improve your premium, while adding a second driver (particularly a spouse) should also help.
For a comprehensive spin through the very best tips, read Ways to cut your car insurance.
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