Premium hikes hitting older motorists
Older drivers are bearing the brunt of insurance premium rises, according to the Consumer Intelligence Motor Insurance Index.
Following the introduction of Insurance Premium Tax (IPT) in November, motorists over the age of 50 have seen their insurance costs increase by an average of 16.4%.
The average for all drivers is 10.9% while drivers under the age of 25 have seen their premiums rise just 1.5%.
In real terms, the average cost of car insurance for over 50s has risen from £239 last year to £279 this year. For under 25s, it’s up from £1,655 to £1,680.
The IPT increase from six per cent to 9.5 per cent was announced in George Osborne’s autumn budget.
Ian Hughes, chief executive of Consumer Intelligence, said, ‘The rise in IPT is having a massive, immediate impact on pricing across the market – and the annual increase of 10.9 per cent is substantial.’