However, car insurance prices have fallen for young drivers with some seeing price reductions of up to £40. The average price of fully comprehensive car insurance premiums stood at below £500 for the third consecutive quarter. The average cost of £459 is a £24 reduction from costs twelve months ago The figure is also down when compared to the average quarter two prices. Drivers above the age of 30 all saw price increases on the average premium cost, with motorists over the age of 65 the worst hit.
Elderly drivers saw a staggering six per cent boost on figures from 12 months as premiums rose by £14.85 to hit the sum of £275.66.
Insurance policies rose by £19.22 for those between 40 and 49 with the average price boosted by five per cent from £378.44 to £397.66.
Drivers between the age of 50 and 64 also saw a price rise of over £14 on last year’s figures in another five per cent hike.
Motorists aged from 30 and 39 saw a one per cent rise as prices increased by £3.69.
Speaking to Express.co.uk, a MoneySuperMarket spokesperson said: “Older drivers are being clobbered by the so-called insurance loyalty tax. They tend to stick with a brand they like and trust, expecting to pay a fair price each year.
“But as the financial regulator has pointed out, car insurers often keep their best prices for new customers at the expense of their loyal ones, whose premiums go up each year.
“That’s why it’s so important to shop around at every renewal to find the best price on the market.”
Drivers between the age of 17 and 19 noticed a staggering £40.85 price drop in a four per cent reduction from last year.
Those between the ages of 20 and 24 noticed a one per cent deduction and those between 25 and 29 saw a two per cent drop for an annual saving of just over £10.
The data, based on analysis of car insurance quotes from MoneySuperMarket revealed what areas of the UK have seen the highest price reductions over the last twelve months.
Residents from the Shetland Islands saw a staggering drop of 15 per cent and almost £50 on their policies as the overall average cost dropped to below £300.
Kirkwall, the Isle of Lewis and the Isle of Man all saw ten per cent price drop to also fall below an average figure of £300.
East London remains the most expensive area to insure a car with an average premium of over £900 for fully comprehensive cover.
MoneySuperMarket experts said the rise in prices for some demographics was down to government changes in the Ogden rate.
This was changed from -0.75 to -0.25 in August and has a direct effect on the level of compensation payout to customers.
Companies may now need to pay out more money in claims and therefore pass on the cost to customers through added fees.