Drivers aged 65 and older faced with £656 cost to keep their car on road

James Rodger

27 June 2024 at 9:04 am·2-min read

The cost of car insurance has increased 18 per cent year-on-year, with the typical policy now costing motorists an eye watering £850 — -Credit: (Image: Getty Images)

Elderly drivers are facing an urgent car insurance warning as costs soar.

The price of car insurance has climbed by 18% year-on-year, with the average policy now costing a whopping £850. This marks a considerable increase of £132 for the average driver compared to last May.

Drivers aged 80 and over have been hit the hardest, experiencing a staggering 27% rise in premiums, reports Birmingham Live. Meanwhile, those aged between 65 and 79 haven't escaped the price hikes either, facing a similarly substantial 26% increase.

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Anna McEntee, Director at Compare the Market, has issued a warning to motorists, saying: "The substantial cost of car insurance is understandably causing concern for many motorists."

She added: "Our research shows motor premiums have risen by more than £100 year-on-year. Drivers aged under 24 and over 80 are seeing the steepest increases. Typically, insurers consider motorists in both age groups as more likely to make a claim which could lead them to see higher premiums.

"For those concerned about the cost of their motor premium, shopping around ahead of renewal is one of the best ways to try and save money on car insurance. We want to encourage older motorists who may be more inclined to stick with their existing insurer each year to compare prices ahead of renewal to see what deals are available."

Young drivers under 25 now have an average annual payment of £1,901, up from £1,591 in May 2023 - a hefty increase of £310 or 19 per cent. Meanwhile, the average annual premium overall has seen a decrease of £80 month on month from April 2024, when it was £930, to £850 last month - a drop of nine per cent.

The recent surge in car insurance peaked in November 2023 when the average annual premium reached £951. Drivers over the age of 80 have experienced the most significant proportional increase in their insurance a rise of 27 per cent on average, with the annual payment now £139 higher at £656 compared with £517 last year.

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