Drivers aged 65 and older will have to pay £656 to keep their car on road

Elderly drivers have been issued an urgent car insurance warning amid soaring costs as motorists could save £549. The cost of car insurance has increased 18 per cent year-on-year, with the typical policy now costing motorists an eye watering £850.

It marks a rise of £132 for the average driver compared to last May, with drivers aged 80 and older seeing the steepest proportional rise in premiums with 27 per cent. Elderly drivers have seen the largest proportional increase of 27 per cent.

Those aged between 65 and 79 have seen a similarly high 26 per cent rise. Anna McEntee, Director at Compare the Market, warned: “The substantial cost of car insurance is understandably causing concern for many motorists.

READ MORE Jay Slater dad says 'that doesn't make sense' and rules out theory over disappearance

"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 added: "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.”

Drivers aged under 25 took the biggest hit to their wallets. Their average annual payment is now £1,901 versus £1,591 in May 2023 – an extra £310, or 19 per cent. The average annual premium overall has declined by £80 month on month from April 2024, when it was £930, to £850 last month – a drop of nine per cent.

The peak of the recent spike in car insurance was in November 2023 when the average annual premium reached £951. Drivers over the age of 80 have seen the steepest proportional increase in their insurance – 27 per cent up on average, with the annual payment now £139 higher at £656 compared with £517 last year.