Car insurance Updated:
Younger drivers, we've got some great news – the cost of the cheapest car insurance for your age group has FALLEN by 10.3% in the last year! It's a fantastic turn of events, particularly as under-25s typically face the highest premiums (not to mention the most dramatic increases), which suggests that the tide could be starting to turn.
The figures, compiled by Consumer Intelligence, certainly seem to indicate that this is the case. Indeed, the dramatic fall in costs for younger drivers came despite the cheapest premiums overall edging up by 0.3% between May 2014 and May 2015, while older drivers saw their premiums increase even more – motorists aged 50+ saw their premiums rise by 5.2% over the same 12-month period.
This may sound like a new development, but in fact, the trend for cutting premiums for younger drivers and increasing them for older ones has been going on for some time – between October 2013 and May 2015, the cheapest car insurance premiums fell by a whopping 23.7% for motorists aged under 25 and by just 2.9% for all motorists, while for those aged 50+, they increased by 7.9%.
The drop in premiums has got to be good news for younger drivers, particularly given the fact that they still pay far more for their insurance overall, even with the latest price cuts. The figures show that the average cheapest premium for all motorists in May 2015 was £677, but for motorists aged under 25 this rose to a considerable £1,628 per year.
Motorists aged 25-49 pay around £457, while those aged 50+ can take heart in the fact that, even though their premiums are slowly rising, they still pay the least amount overall, with the average cheapest premium setting them back just £247 per year.
Ian Hughes, chief executive of Consumer Intelligence, said: "The advent of Black-box policies for younger drivers is pushing down premiums – under-25s saw massive increases in premiums at the turn of the decade, so these reductions should help to put more of them back on the road. However, to some degree, this seems to be at the expense of older motorists."
Young or old, you don't want to spend more than you need to for your car insurance policy, which is why it's so important to shop around. Don't simply accept the renewal quote offered by your current insurance provider – use our handy quote tool to see if you can find an even better deal! Chances are, you could save yourself some money!
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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