In Depth

Will you be hit by the increase in car insurance?

Government changes mean the average driver is paying an extra 11 per cent for premiums

Drivers paid an average 11 per cent more, or £48, for their car insurance over the past 12 months, with older drivers hardest hit.

A typical premium is now £484 a year, says the Association of British Insurers (ABI), mainly due to the government's decision to increase the amount insurers must pay to those with life-changing injuries. It's the biggest year-on-year increase since the ABI began records in 2012.

Peers in the House of Lords will debate a motion today censuring the government for changing the "discount rate" without carrying out proper assessment of the impact on consumers.

So which drivers are facing the steepest increases in car insurance?

The elderly

According to The Guardian, the over-65s have been especially hit by the increase. Failing to shop around for a policy could cost older drivers as much as £500 a year, it adds.

The young

Inexperienced younger drivers pay the highest premiums and have faced the steepest increase this year. Warning the rises were "hurting people who can least afford it", Huw Evans, director general of the ABI, said: "Worryingly, these increases are unlikely to be the end of the road if reinsurance premiums go up at the end of the year, adding further costs to insurers."

People in Scotland

While the average cost of a policy varies around the country, some of the most expensive places to live and drive are in Scotland, according to The Herald. Drivers north of the border pay less than other motorists for their car insurance but have born the brunt of increases, says the paper.

The average policy is now between £50 and £75 more expensive in Scotland. Drivers aged between 18 and 22 could pay as much as £1,000 more, while over-65s may be paying an extra £300.

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