Insurance premiums for young motorists have fallen substantially, whilst older drivers are starting to pay more.
Since October 2013, the cheapest car insurance for motorists under 25 has plummeted by 20.6 per cent. For the over-50s, however, it has leapt 13 per cent.
Ian Hughes, Consumer Intelligence chief executive, told the Daily Record: “Older drivers are, to an extent, helping fund premium reductions for younger motorists and need to ensure they are receiving the best value for money from their insurer.”
This upward trajectory for younger motorists fails to relive them of their insurance burden though, as they are still paying up to six times more than older drivers.
Comparing the average cheapest premiums for ‘normal’ motorists to that of under-25s is enlightening, with £696 compared with £1,680. This is slashed to £258 for the over-50s.
Consumer Intelligence recommends that young people use ‘black boxes’ to reduce their hefty premiums.
Their researchers discovered that 46 per cent of the most competitive quotes for the under-25s come from these telematics providers, compared with 32.5 per cent in October 2013.
Taking its recommendation further, Consumer Intelligence has offered a number of top tips for young motorists looking to cut their insurance costs.
These include opting for a higher excess at around £500, although this does mean the customer pays out more if they need to claim. Another such recommendation suggests adding an older second driver to the policy, or even looking at multi-car policies if the young person is living with family.
Author: Oliver Harry