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Automobile insurance costs: Drivers over 50 faced biggest hikes this yr

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Drivers over 50 faced the most important rise in motor insurance premiums during the last yr as insurers pass on higher cost of claims to consumers, Comparethemarket says

  • Over 50s drivers faced the most important spike in motor insurance premiums in 2022
  • Comparethemarket said insurers are passing on higher cost of claims
  • Recent insurance rules have been in place since 1 January 2022  

Drivers over 50 have faced the steepest hikes in motor insurance premiums up to now yr, in accordance with latest findings. 

The common automobile insurance premium for a driver between 50 and 64 was £320 last month, which is £45 or 16 per cent higher than in the identical month a yr ago. 

For drivers aged between 65 and 80, average annual premiums have increased by 16 per cent or £39 year-on-year to £274. 

Meanwhile, drivers over 80 have seen premiums surge by 18 per cent or £66 to a median of £435, in accordance with Comparethemarket. 

Hikes: Drivers over 50 have faced the steepest hikes in motor insurance premiums up to now yr, Comparethemarket said

While all age groups have seen automobile insurance costs rise up to now yr, the over-50s have been hit hardest and, in accordance with Comparethemarket, usually tend to auto-renew their policy slightly than shop around and switch to a unique provider. 

Since 1 January insurers have been banned from quoting customers the next price for renewing their motor or home insurance than they’d pay in the event that they were a latest customer. 

While this rule stays in place, motor insurance premiums have gone up across the board. The general average premium across all age groups swelled by 14 per cent, or £76, year-on-year to achieve £629 in November. 

The hikes come as insurers ‘pass on the upper cost of claims to their customers,’ in accordance with Comparethemarket.   

It added: ‘The price of automobile insurance claims has increased on account of an uplift in the worth of second-hand cars and better vehicle repair costs.’ 

The Association of British Insurers has been warning for months that increasing pressure on the sector to soak up higher costs would eventually end in higher prices for consumers.

Premiums: A table showing motor insurance premium hikes for over 50s in the last year

Premiums: A table showing motor insurance premium hikes for over 50s within the last yr

Variations: Average motor insurance premium by area, according to Comparethemarket

Variations: Average motor insurance premium by area, in accordance with Comparethemarket

Drivers in Greater London have endured the most important spike in automobile insurance premiums during the last 12 months. The common premium within the capital has jumped by a hefty £137 or 17 per cent within the yr to November. 

At the opposite end of the spectrum, motorists within the South West of England have seen the smallest rise in motor insurance premiums. Within the South West premiums average premiums increased by 9 per cent or £37 to a median of £458.

The West Midlands also saw a comparatively modest upturn in motor insurance premiums, having risen by £46 within the yr to November, bringing the common cost as much as £519. 

Julie Daniels, a motor insurance expert at Comparethemarket, said: ‘Drivers will likely be concerned that the fee of automobile insurance is rising, especially when household funds are already being strained. 

‘Our research shows the common motor premium has increased by 14 per cent year-on-year. 

‘Nonetheless, the fee of automobile insurance is rising faster for drivers over 50. 

‘This might mean that these motorists find yourself paying way more than they should for automobile insurance, as also they are less more likely to switch insurers.’

Based on Comparethemarket, drivers can save around £328 by shopping around for his or her motor insurance.  

Daniels said: ‘Our figures show loyalty doesn’t pay. By shopping around, drivers could save a whole lot of kilos when their policy ends. We encourage everyone now, greater than ever, to envision in the event that they could save by switching ‘

Earlier this month the Financial Conduct Authority said it believed some insurers were ripping off customers by undervaluing cars and other items when settling claims.

The FCA said it had seen evidence that some people left with written-off cars were being offered a price lower than the vehicle’s fair market value by their insurer.

In some cases, only a grievance will end in the next offer, the regulator said. Offering a price lower than fair market value is just not allowed under FCA rules.

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