Older drivers hit hardest by rising insurance costs

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CAR-INSURANCE costs are soaring, with older drivers bearing the brunt of the rises.

Figures from Sainsbury’s Car Insurance showed average premiums rose 5.8% between July 2007 and June 2008, with the average price now £514.36. This is the first time since the company’s index was launched in June 2005 that the average price had exceeded £500.

Those over 65 have seen the biggest rise – an average of 10% – in the past 12 months.

Although drivers under 25 are now paying the highest premiums – an average of just over £1,249 – the year-on-year increase for these young motorists has only been 2.47%. This was the lowest rise for any age group.

The figures also showed men continued to pay more for their car insurance than women on average: £540.49 compared with £470.47.

Sainsbury’s Car Insurance manager Joanne Mallon said: “Accepting a lower premium does not mean that you have to sacrifice quality cover.

“By shopping around you can find both. Just make sure, when comparing car-insurance policies, that you do this on a like-for-like basis.”