Motor premiums increase for many drivers

Drivers over 50 years old have witnessed the largest increase to their motor insurance premium in the last 12 months – 3.3% – when compared with other age groups. Yet they still benefit from the lowest premium of all demographics, with an average of £413. This is according to research from data analytics company, Consumer Intelligence.

The overall upwards trend is also driven by motorists aged 25-49 who have seen a 2.6% rise to their car insurance costs in the same period and typically pay £714.

The government’s Ogden rate adjustment in August has supposedly been a major factor in the more recent increases.

In contrast, motorists under-25 continue to witness reductions to their motor covers. This age group recorded premium declines of 1.2% over the past 12 months. On the other hand, these drivers continue to pay the most for car insurance, with average premiums sitting at £1,591.

The data analytics firm said that black box covers play an important part in the young driver segment. Around 59% of the cheapest quotes for the under-25s are now offered up by telematics providers. This figure drops to 13% for drivers aged 25-49 and just 2% for the over-50s.

Product manager at Consumers Intelligence, John Blevins said young drivers remain a huge focus for the telematics industry.

“However, when you take the market as a whole, competitive growth remains fairly static,” he added. “We’ve only seen telematics brands increase their competitive offerings by 1% over the last 2 years from 19% to 20% based on an average of the five cheapest quotes returned.”

Just two regions – Eastern (-0.9%) and Yorkshire and Humber (-0.5%) – saw car insurance premiums fall in the past 12 months. London, meanwhile, recorded the highest premium price rises of 4.8% with the West Midlands (4.5%) following on its tail.

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