Motorists Over 50 Hit With 34pc Hike

Drivers that are over the age of 50 have been unfairly punished while insurers have raised prices by over a third in three years while experts say that they are being looked at as a rising liability on the roadways.

The rising costs have been hitting older motorists even though the recent data shows that they are not involved in accidents that are any more serious than they were around ten years ago.

Due to the research by a financial research firm known as Consumer Intelligence, the annual premiums for over the age of 50 have been raised by 34pc through the last three years.

This is just about 10pc more than the price rises that have hit people between the ages of 25 and 49 who are now being charged about 24pc more for their car insurance than they had been in 2013.

At the same time, 21 to 24-year-olds have had an increase of only 2.9pc, while experts say that a rise in the telematics technology where new driver’s vehicles are being fitted with black boxes in their cars to track movements have helped to bring their costs down as they are having fewer accidents.

The chief executive of Consumer Intelligence, Ian Hughes, stated that the older drivers are being charged a bit more due to a tipping point where the older drivers would turn into a much bigger liability on the roads.

The figures from the Department of Transport are now showing that despite the population of the other people in Great Britain has been increasing faster than the younger age groups, the number that is being killed, or those sustaining significant injuries from major traffic accidents has declined over the last decade.

It has shown that a proportion of elderly drivers that are sustaining injuries in car accidents has remained more stable over the past ten years.

The Treasury raised the level of taxes in 2015 from 6 pm to 9.5pm, which adds around £20 the insurance premiums on average.

This is a move that was highly controversial, being labeled as a steal tax at the time. Experts warn that insurers would be using it as an excuse for making extra profits.

Ian Hughes noted that people living longer and driving a lot longer are bringing up the claims costs.

There are now more accidents with older drivers, and the cost of the accidents are much higher. Older drivers will benefit from lower rates while insurers compete for the group less likely to claim overall than the other age groups.

Leave a Comment: