Older drivers face the threat of being hit with a whopping £500 car insurance price hike, according to dramatic new data. Internal data from MoneySuperMarket has revealed how much car insurance premiums differ by age, with massive hikes expected between the ages of 70 and 90.
Analysis by the experts found that drivers aged 70-79 pay the lowest annual car insurance premiums of all UK drivers at an average of £429 per year, around 44% below the UK's overall average. This was the cheapest premium of any road user, just £7 cheaper than motorists aged 60-69 and over £100 less than those between 50 and 59.
The rates were also lower than much younger drivers, with motorists between 20 and 29 paying over £1,300 per year for cover. However, the data shows how car insurance fees can dramatically rise in older age, with road users between 80 and 89 paying £586 to insure their vehicles.
This indicates older drivers are faced with a £157 price rise once they hit the milestone birthday, and it doesn’t stop there, with further hikes at 90. According to MoneySuperMarket, those above the age of 90 pay an average of £937 per year for coverage, a further £351 increase.
It means road users face paying £508 more between 70 and 90 in a staggering price hike hitting state pensioners. Age UK previously warned that those over 80 may see the cost of their car insurance go up.
This is because drivers over 80 statistically make more expensive claims than some younger age groups, such as motorists between 50 and 60.
Age UK added: “Car insurance costs are calculated based around risks and the likelihood of a claim being made. While older drivers have lots of road experience, they also tend to face more health challenges that can affect their driving.
“This increases the risk of being involved in an accident and therefore increases the price of insurance too.”
