- Over-50s see the fastest price rises but still pay the lowest average premiums
- Over-50s have seen premiums increase 34% in the past three years
Car insurance premiums have increased by 9.3% in the past year with drivers over the age of 50 seeing the biggest rises, new research1 from insurance research experts Consumer Intelligence shows.
Its data shows premiums for those over 50 has increased by 10.9% in the year to November – and by 34% in the past three years.
However older drivers still pay the lowest average annual premiums at £398 compared with other age groups despite the huge increases over the past three years.
Consumer Intelligence warns that the third rise in Insurance Premium Tax to 12% due from June 1st 2017 will continue the pressure on premiums and urges drivers to shop around for the best deals.
Its data – used by the Government’s Office of National Statistics to calculate official inflation statistics – shows premiums for those aged 25 to 49 rose 9.5% in the year to November and 7.1% for drivers aged 21 to 24.
Over the past three years, motorists aged 25 to 49 have seen increases of 24.4% and 21 to 24-year-olds have seen increases of just 2.9%.
Ian Hughes, Chief Executive of Consumer Intelligence said: “Car insurance premiums continue to accelerate and the year ahead is certain to bring more rises as Insurance Premium Tax is increased yet again.
“IPT will have doubled in less than two years hammering motorists who have no choice about whether or not to insure their vehicle. They can however choose their insurer and everyone should be shopping around to at least limit price rises.”
Average premiums for 25 to 49-year-olds are £636 compared with £1,190 for those aged 21 to 24. The three months to November have seen premiums rise by 2.7% for the market as a whole and 3.8% for 21-24-year-olds.