Personal Finance

Car insurance hike for the over-50s

The cost of car insurance for the over-50s has risen dramatically in the last year, it has been revealed.

A survey by found that the average cost of premiums for motorists over 50 rose from £355.52 in June 2009 to £449.66 in June 2010, a rise of 26%.

Car insurance companies specialising in the 50-plus age group also offered a wide range of quotes, with the highest being £563 and the lowest £378, a difference of 49%, results showed.

Perhaps unsurprisingly given the soaring cost of their insurance and the huge difference in premiums available, the survey also revealed customers the over-50s do not always remain loyal to their car insurance companies.

The poll of more than 600,000 people found that 81% of consumers aged 50-plus shopped around for quotes when renewing their motor insurance, and having done so, 50% decided to switch to another company.

Their savvy behaviour paid off, as 87.5% of those who switched claimed to be saving money.

But the survey found that the over-50s were less motivated by price than other age groups. Just 47% said they had chosen their insurer because they were the cheapest, compared with 56% of the whole switching market.

Sam Jackson

Money Dashboard