Older drivers 'subsidising young motorist premiums'

Car, close-up of damaged front fender
Car, close-up of damaged front fender

Insurance premiums for younger motorists have been slashed while older drivers pick up the tab, new research has claimed.

Since October 2013, the cheapest car insurance for under-25s has fallen by 20.6% while for over-50s it has jumped 13%, according to Consumer Intelligence chief executive Ian Hughes.

"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," he said.

Despite this recent trend, young drivers are still paying up to six times more for their cover. The average cheapest premium for all motorists was £696 in August, compared with £1,680 for under-25s and just £258 for those over 50.

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Consumer Intelligence claims younger drivers can help reduce premiums by making use of telematics, or "black box" technology.

Its research found that 46% of the most competitive quotes for under-25s now come from telematics providers, compared with 32.5% in October 2013.

To help young motorists drive premiums down further still, Consumer Intelligence has offered the following five tips:

Opt for a higher excess

The amount you pay on a claim before the insurer pays out. Setting your excess at £500 or more will cut costs although it will mean you pay out more if you have to claim.

Add another, older driver to your policy

Having a second named driver on the policy can reduce the premium.

Look at multi-car policies if you live with parents

Insurers offer discounts for customers insuring two or more cars with them.

Shop around

This is especially important when you are getting insurance for the first time as prices vary massively.


When it comes time to renewing, be sure to query the premium you have been offered.

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