Car insurance for over 50s rises by up to £222 in one year – how to reduce premium costs | Personal Finance | Finance newsbhunt

Over 50s are facing a staggering rise in the amount they pay towards car insurance due to inflation, according to new research.

Data from Compare the Market’s new Premium Drivers report found that the typical premium for a driver aged between 45 and 54 is £551 in September 2023.

This represents a £195 increase in payments from the same month last year which is a 55 percent rise.

For motorists between the ages of 55 and 79, the average car insurance premium has jumped by 54 percent year-on-year.

Drivers aged 80 or over have seen their premiums rise by £222, or 52 percent, to £645 within the last 12 months.

Read more: Elderly drivers risk being priced off the road as costs soar by over £200

It should be noted that the cost of car insurance has been raised across all age groups recently.

On average, the typical car insurance premium has risen 49 percent year-on-year to reach £848 which is a £278 increase from September 2022.

Experts cite a rise in the cost of claims for insurers as to why premium prices have shot up with said cost being passed onto drivers.

Inflation continues to be an issue which has impacted the motor repair industry, namely with the cost of spare parts and energy.

Prior insurance analysis has revealed drivers aged over 55 are usually more likely to renew with their existing provider rather than look for a cheaper deal.

As a result of this, older motorists could be paying more than they need to for their vehicle’s car insurance.

According to Compare the Market, drivers over the age of 50 could save up to £159 on their car insurance if they use the site.

Julie Daniels, a motor insurance expert at Compare the Market, highlights how these soaring vehicle costs exacerbate people’s already existing cost of living woes.

She explained: “The rising cost of car insurance is understandably causing concern for many motorists, with our research showing motor premiums have increased by 49 percent 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.

“It’s also important for people to consider if they’re able to encourage or support friends and family members to look for savings online.”