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Over-50s see car insurance rise

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Drivers aged over 50 have seen their car insurance costs rise by more than a quarter over the last 12 months, a new poll has shown.

A survey of more than 600,000 people by research firm ConsumerIntelligence.com found that the average price of insurance premiums for this age group rose year-on-year by 26% to £449.66 in June from £355.52.

Findings of the research also revealed a huge disparity in average premium quotes offered by insurers specialising in the 50-plus age group - with the highest quote of £563 being nearly half (49%) more than the lowest quote of £378.

The survey found that many 50-plus consumers do not stay loyal to their insurer, with 81% shopping around for quotes at renewal, and half of them switching to a different insurance provider.

According to the poll, 87.5% of these switchers claimed to be saving money on their new motor insurance, compared with 84.2% of the market as a whole.

However, the poll found that the 50-plus segment tends to be less motivated by price, with less than half (47%) choosing their insurer because they were the cheapest compared with 56% of the whole switching market.

© Press Association 2010