Over 50s struggle with car insurance hikes
Motorists aged over 50 have seen their car insurance premiums rise by more than a third during the past three years.
Research by Consumer Intelligence suggests the over 50s have seen their premiums rise faster than any other age group. Premiums increased by 10.9% in the year to November 2016, meaning prices have grown by 34% in the last three years.
But despite this rapid rise, over 50s still pay much less than younger drivers.
The average over 50 driver pays annual premiums of £398 for their car insurance while those aged between 25 and 49 pay £636. Those aged between 21 and 24 face the highest premiums, typically paying £1,190 a year.
However, the gap between age groups has been narrowing. Over the past three years motorists aged 25 to 49 have been hit by 24.4% increases while 21 to 24-year-olds have seen just a 2.9% rise.
Consumer Intelligence warns that costs are likely to increase further when Insurance Premium Tax (IPT) rises to 12% on 1 June 2017 – its third rise in less than two years.
Ian Hughes, chief executive of Consumer Intelligence, says: “Car insurance premiums continue to accelerate and the year ahead is certain to bring more rises as Insurance Premium Tax is increased yet again.
“Insurance Premium Tax will have doubled in less than two years hammering motorists who have no choice about whether or not to insure their vehicle. They can however choose their insurer and everyone should be shopping around to at least limit price rises.”