Elderly drivers warned of rapid increase in cost of car insurance

Dr Hilary discusses the risks for older drivers

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Motorists over the age of 50 are set to see steep increases in the price of car insurance, according to the latest Premium Drivers research from Comparethemarket. The average premium for a driver aged between 50 and 64 is £320 in November 2022 – a £45 or 16 percent increase for the same month in 2021. 

The average premium for drivers aged between 65 to 80 has also risen by 16 percent (£39) year-on-year to £274. 

For drivers aged over 80, premiums have increased by a steeper 18 percent (£66) to £435.

While insurance premiums have increased for all age groups, car insurance costs are rising faster than the national average for these drivers and many could be paying more than they need to. 

According to data from the Driver and Vehicle Licensing Agency (DVLA), a record number of people over 70 years old are currently on the road. 

Britain’s oldest driving licence holder is now 108 years of age, with elderly drivers now accounting for around one in seven drivers.

The data, from March, shows that over 5.7 million people aged 70 and over now have a full driving licence – up by 10 percent since March last year. 

The biggest percentage increases have been in the oldest age groups, with the number of drivers aged between 90 and 99 rising by 12 percent to almost 133,000, and the number aged 100 and over up by 23 percent to more than 500.

Julie Daniels, motor insurance expert at Comparethemarket, commented on the new data, saying motorists should always look around to see if they can save money.

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She said: “Drivers will be concerned that the cost of car insurance is rising, especially when household finances are already being strained. 

“Our research shows the average motor premium has increased by 14 percent year-on-year. However, the cost of car insurance is rising faster for drivers over 50. 

“This could mean that these motorists end up paying much more than they need to for car insurance, as they are also less likely to switch insurers. 

“Our figures show loyalty doesn’t pay. By shopping around, drivers could save hundreds of pounds when their policy ends. 

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“We encourage everyone now, more than ever, to check if they could save by switching.”

A separate survey found drivers aged over 55 are more likely to stick with their existing insurers rather than look for a cheaper deal. 

However, drivers could save £328 on average by shopping around for car insurance on Comparethemarket.

Sometimes, older drivers pay significantly more because they put younger relatives on their policy or have more expensive cars.

Across all groups, car insurance premiums are rising as insurers pass on the higher cost of claims to their customers. 

The overall average premium has risen 14 percent year-on-year to reach £629 in November 2022. This is a £76 increase from the same month last year. 

The cost of car insurance claims has increased due to an uplift in the value of second-hand cars and higher vehicle repair costs.

Drivers in Greater London have seen the greatest increase in car insurance premiums on average in the past 12 months. 

The typical motor premium in London has risen by £137 since last year to reach £960 in November 2022 – more than any other part of Britain. 

Motorists in the South West have witnessed the smallest increase in the country, where the average premium has risen by £37 in the past year to £458.

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