How much have insurance premiums increased over the past year?
It’s generally assumed that car insurance premiums decrease in cost as you get older, meaning that drivers over the age of 50 can typically access some of the lowest insurance rates available. However, our latest data shows the opposite. In fact, motor premiums for drivers aged 50 to 64 rose 2% more than the overall average from November 2021 to November 2022.
Car insurance premiums for older motorists are on the rise
Across all groups, car insurance premiums are rising as insurers pass on the higher cost of claims to their customers. The overall average premium has risen 14% year-on-year, reaching £629 in November. This is a £76 increase from the same month the year before. The cost of car insurance claims has increased due to an uplift in the value of second-hand cars and higher vehicle repair costs.
The average premium for a driver aged between 50 and 64 was £320 in November 2022 – a £45 or 16% increase for the same month in 2021. The average premium for drivers aged between 65 to 80 has also risen by 16% (£39) year-on-year to £274. For drivers aged over 80, premiums have increased by a steeper 18% (£66) to £435. However, drivers aged between 30 and 39 saw their premiums increase by just 11% over the same period while premiums for 25-29 year olds rose by 14%, in line with the overall average percentage increase.
| Age group | November 2021 | November 2022 | Change (£) |
|---|---|---|---|
| Under 20 years | £1,444 | £1,711 | +£267 |
| 20 to 24 years | £893 | £1,050 | +£157 |
| 25 to 29 years | £592 | £672 | +£80 |
| 30 to 39 years | £495 | £552 | +£57 |
| 40 to 49 years | £384 | £450 | +£66 |
| 50 to 64 years | £275 | £320 | +£45 |
| 65 to 79 years | £235 | £274 | +£39 |
| Over 80 years | £369 | £435 | +£66 |
While insurance premiums have increased for all age groups, car insurance costs are rising faster than the national average for older motorists, and many could be paying more than they need to. A separate survey we ran found that drivers aged over 55 are more likely to stick with their existing insurers rather than look for a cheaper deal.
Which areas within the UK have seen the biggest increases in car insurance premiums?
Drivers in Greater London have seen the greatest increase in their car insurance premiums on average in the past 12 months. The typical motor premium for London drivers has risen by £137 (17%) year-on-year to reach £960 in November 2022 – more than any other part of Britain.
Motorists in the South West have witnessed the smallest increase in the country, where the average premium has risen by £37 or 9% in the past year to £458.
| Area | 2022 (Nov) | 2021 (Nov) | Change (£) |
|---|---|---|---|
| East Anglia | £581 | £511 | £71 |
| East Midlands | £596 | £540 | £56 |
| Greater London | £960 | £822 | £137 |
| North East | £572 | £505 | £67 |
| North West | £707 | £636 | £71 |
| Northern Ireland | £602 | £542 | £60 |
| Scotland | £512 | £455 | £57 |
| South East | £567 | £510 | £57 |
| South West | £458 | £421 | £37 |
| Wales | £519 | £473 | £46 |
| West Midlands | £735 | £637 | £98 |
| Yorkshire and the Humber | £689 | £604 | £84 |
| Overall Average2 | £629 | £552 | £76 |
What are the best ways to get cheaper car insurance?
Now more than ever, it’s important that drivers are getting the cheapest price possible for car insurance. We’ve pulled together five key tips to keep in mind for your next car insurance policy renewal.
1. Don’t let your policy auto-renew
Although insurers can no longer quote existing customers higher premiums than new customers, you shouldn’t assume that there isn’t a better price out there. Shop around before your renewal date to make sure you’re always getting the best deal for you.
2. Step your security up
Getting an immobiliser or industry-approved alarm fitted to prevent thefts and break-ins could help reduce insurance costs. Get in touch with your provider to discuss how this may impact your premium.
3. Rethink how you describe your job
Your job title is one of the many factors insurers use to assess your risk. There may be several job titles that accurately reflect your role, but some will return a cheaper quote than others. For example ‘GP’ vs. ‘doctor’. Find out more about how the job title you select might impact your premium.
4. Don’t wait until the last minute to renew
The closer you get to your renewal date, the more you could end up paying for your cover. It’s best to start getting quotes around three weeks before your renewal date - mark this date in your calendar to make sure you don’t miss out on any potential savings.
5. Shop around
It’s always worth checking out your options to see if there’s a better deal out there. Our latest figures reveal that drivers could save up to £374 on their car insurance when they compare providers through us.
Read through our list of 20 top tips for getting cheaper car insurance for more money-saving hints and advice.
Methodology
All other insurance data is sourced from Comparethemarket.
51% of Comparethemarket customers were quoted less than the prices in the tables above for their car insurance for the months specified.
2 51% of Comparethemarket customers in Britain were quoted less than this price for their car insurance for the months specified. This is not an average of the averages for each region.