Premium hikes hit over 50’s hardest
Over 50s are bearing the brunt for a spike in car insurance premiums.
Premiums have risen by 13% to an average of £683 in the last year, with over 50’s seeing their policies rise more than 15% on average.
Research from Consumer Intelligence has found the average premium for over 50s is now up to £298, but that is still substantially cheaper than under 25s, who must fork out £1,600 on average after a rise of 9.3 per cent in the last year.
However, it’s not all bad news for young drivers. Their premiums are 15% lower than they were in 2013, mainly because of the impact of telematics and the black box device, which allows insurers to measure driving habits and adjust policies accordingly.
The steady rise across the board has been attributed to the Government’s Insurance Premium Tax, which rose from six per cent to 9.5 per cent last November.
Ian Hughes, chief executive of Consumer Intelligence said, ‘Average motor insurance premiums are heading upwards at a rapid rate with the Insurance Premium Tax a major factor.
‘Under-25s who pay the highest average premiums at £1,600 need to seriously look at black box technology as a way of limiting price rises but can take some comfort from the fact that prices are still lower than they have been.’
Insurance expert at uSwitch.com, Rod Jones, added, ‘More motorists are getting up to speed with black box insurance in a drive to manage rising costs.
‘Younger drivers in particular can now prove their worth on the roads, having been penalised by their boy racer peers for years.
‘The little black box can make all the difference. As the technology bases premiums on actual driving habits, not generalised data, careful motorists can enjoy a substantial saving.
‘For black boxes to appeal to all, the industry needs to convince motorists about how their personal data is used.’