Motorists over 50 are facing substantial increases in the cost of car insurance, according to new Premium Drivers research from Compare the Market.
The typical premium for a driver aged between 45 and 54 is £551 in September 2023 – a £195 (55%) increase for the same month in 2022.
The typical premiums for drivers aged between 55-79 have also risen by 54% year-on-year. For drivers aged over 80, premiums have increased by £222 (52%) to £645.
Car insurance premiums have increased across all age groups in recent months. The typical car insurance premium has risen 49% year-on-year to reach £848. This is a £278 increase from the same month last year.
The significant rise in the cost of car insurance may in part be due to a rise in the cost of claims for insurers. The rapid rise in inflation will have likely impacted many areas of the motor repair industry including the cost of spare parts, energy, and hiring specialist mechanics.
Previous research has shown drivers aged over 55 are typically more likely to renew with their existing provider rather than look for a cheaper deal.
This suggests many older drivers could be paying more than they need to for car insurance. Motorists over 50 could save up to £159 on their car insurance through Compare the Market.
Drivers in the West Midlands have seen the greatest proportional increase in car insurance premiums of any region in the UK over the past 12 months. The typical motor premium in the West Midlands has risen by £352 (53%) year-on-year to reach £1,013 in September 2023.
Whilst motorists in Northern Ireland have witnessed the smallest proportional increase in the UK, the average premium has still risen by £199, or 35%, in the past year to £761.
Julie Daniels, motor insurance expert at Compare the Market, said, “The rising cost of car insurance is understandably causing concern for many motorists, with our research showing motor premiums have increased by 49% year-on-year.
“For all drivers, shopping around ahead of renewal is one of the best ways to save money on car insurance. We want to encourage motorists over 55, who have typically tended more to stick with their existing insurance provider each year, to compare prices to find the right deal.”
In Wales last year the average premium in September was £472 but renewal last month will have seen this rise to £677, some 43% up. Only the South West and Ireland saw less of a rise.