Insurance hikes hit older drivers

Olders drivers are bearing the brunt of soaring car insurance costs, it has been revealed.

Figures from Sainsbury's show 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 aged over 65 have seen the biggest rise - an average of 10% - in the last 12 months.

Although drivers under the age of 25 are now paying the highest premiums - an average of just over £1,249 - the increase for these young motorists has only been 2.47% in the last 12 months.

This was the lowest rise for any of the age groups.

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

A Sainsbury's spokeswoman advised everyone to shop around for competitive insurance, but added that “accepting a lower premium does not mean that you have to sacrifice quality cover”.

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