Drivers aged 65 and older have to pay hundreds extra in insurance as costs soar

Howard Lloyd

25 June 2024 at 3:32 am·2-min read

Stock image of a person behind the wheel of a car — -Credit: (Image: Getty)

Elderly drivers have been issued a stark warning about the cost of car insurance. The price of insuring a vehicle has seen an 18 per cent increase year-on-year, with the average policy now costing motorists a staggering £850.

This represents a rise of £132 for the typical driver compared to last May, with drivers aged 80 and over experiencing the most significant proportional increase in premiums at 27 per cent. Elderly drivers have witnessed the largest proportional hike of 27 per cent.

Those aged between 65 and 79 have also experienced a similarly high increase of 26 per cent. Anna McEntee, Director at Compare the Market, expressed her concern: "The substantial cost of car insurance is understandably causing concern for many motorists."

"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."

McEntee further advised: "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.", reports Birmingham Live.

Young drivers under 25 have been hit the hardest, with their average annual payment now standing at £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 highest point of the recent surge in car insurance was 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 whopping 27 per cent rise on average, with the annual payment now £139 higher at £656 compared with £517 last year.

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