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Insurance costs fall for older drivers

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New research has revealed that older drivers have seen the most significant decrease in car insurance costs over the last 12 months.

Figures from Confused.com and Towers Watson Car Insurance Price Index have highlighted that insurance costs are beginning to fall. The age range that are benefiting from the fall in costs is drivers aged over 70, with a 9% decrease compared to last year.

Average insurance premiums for drivers over 70 stands at £426 compared to £467 last year, showing that they are receiving the biggest fall in costs and have the cheapest premiums compared to other age groups. Reasoning behind this is because insurers see them as a lower risk of being in an accident or making a claim.

However it’s not just older drivers who are seeing a difference in premiums costs. Young drivers aged 17-20 have also seen a price decrease over the last 12 months with an average premium costing £2,491 which is down by 7.4%. Meanwhile drivers aged 21-25 now pay £1354 a year which has decreased by 7.9%.

The figures also revealed that male drivers are still paying more for their premiums compared to female drivers. This is expected to change when the new European Law is passed in December. The new law will make it illegal for insurers to charge more for a premium based on gender.

The latest Insurance Price Index has shown that there has been a slight decrease over the last 12 months which could mean premiums may hopefully start to gradually decrease year on year.

Ian Donaldson Managing Director of Autonet Insurance commented: “The latest figures that have been published highlight how insurance premiums can change over 12 months. It is also interesting to see that young driver’s premiums have also dropped slightly.”