Elderly drivers issued major car insurance warning as costs soar by 27%

James Rodger & Lucy Farrell

25 June 2024 at 1:44 pm·2-min read

A view of a lane motorway in England UK from a footbridge above — -Credit: (Image: Getty Images)

Elderly drivers have been issued a stark warning about car insurance costs which have rocketed, potentially costing them an extra £600 to stay on the road.

The price of car insurance has surged by 18 per cent year-on-year, with the average policy now costing drivers a staggering £850, reports Birmingham Live.

This represents an increase of £132 for the typical driver since last May, with those aged 80 and over experiencing the most significant proportional rise in premiums at 27 per cent. Those aged between 65 and 79 have also seen a similarly steep 26 per cent increase.

Anna McEntee, Director at Compare the Market, cautioned: "The substantial cost of car insurance is understandably causing concern for many motorists. Our research indicates that 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."

Motorists under 25 have been hit 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. The overall average annual premium 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 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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