Older drivers hit by steeper rises in car insurance

OLDER drivers have been hit with steeper increases to car insurance premiums than younger motorists after a sharp rise in the number of over-55s driving expensive electric cars.

The average motor insurance premium increased 7.8pc over the last year, with the typical policy now costing £786, according to analysts at Consumer Intelligence. However, drivers over the age of 50 were stung by the highest increases, with premiums rising by 9.4pc on average, compared with drivers aged under 25, whose premiums fell by an average of 3.2pc although they are statistically more likely to have an accident.

Experts said the rise was due to older drivers purchasing electric cars, which are typically more expensive than petrol models and cost more to insure. A survey by insurer Saga found 54pc of drivers aged 55 and over were now considering switching to an electric vehicle, with recent petrol cost rises the primary reason, rather than concern for the environment.

However electric cars cost more to repair and Kevin Pratt of Forbes Advisor, the comparison website, said insurers were passing these costs on to customers.

“Electric vehicles are popular among older drivers, but there still isn’t an extensive network of garages in the UK that can deal with them,” he said.

Younger drivers still pay more on average than those over 50, with under25s typically paying £1,669 for their car insurance, compared with £414 for older drivers. Motorists aged 25 to 49 now pay £592 on average – an increase of 6.4pc on last year.