Recent research has found that British drivers in nearly all age groups are paying more for car insurance than ever before.
This is according to the Association of British Insurers (ABI) which compared figures from the years 2015 and 2016.
Comparing those two years, it was found that only drivers aged 21 and under had seen a drop in premiums, owing largely to the more widespread use of telematics boxes for this age group. Even so, drivers aged 18 to 20 paid the highest average premiums last year at £973, compared to just £260 for drivers aged 66-70.
It has also been found that drivers in their late 50s and late 80s faced the highest premium rises - nearly £35 year-on-year.
It is anticipated that drivers in Britain will experience further premium hikes due to the Government’s decision to cut the personal injury discount rate. This rate, which is also known as the Ogden rate, is used to make it simpler to calculate an individual’s future losses in personal injury or accident cases.
When a claimant’s compensation is being calculated by the courts, they use the Ogden rate and the higher the figure, the lower the initial lump sum. The figures uncovered, however, do predate the government’s choice to cut the personal injury discount rate.
The director general at ABI, Huw Evans, commented: “With inflation on the rise, motor premiums at a record high and the public purse under pressure, it’s concerning that the government has yet to commit to delivering a fairer system for setting the personal injury discount rate.
“We’re pleased the government is going to bring forward a Civil Liability Bill to reform whiplash-style personal injury compensation, but the benefits could be wiped out if they don’t defuse the discount rate bombshell.”