Drivers over 30 who agree to have their driving habits monitored by their insurer are charged more for their car insurance, research shows.
Due to advances in telematics technology, car insurance providers now offer voluntary schemes which monitor and set your premiums based on your driving habits. If you can prove that you drive safely and responsibly, your insurer could provide a lower premium.
Despite this, research by MoneySuperMarket found that telematics only reduces the cost of a premium for those aged 17 to 24.
The data looked at 1.2 million car insurance enquiries to reveal that drivers aged between 17 and 19 save an average of £855 on a standard average premium of £2,079.
Drivers aged between 20 and 24 also save an average of £383. Collectively, these two age groups make up two thirds (66%) of the telematics policies taken out.
But the financial advantages of telematics diminish once a driver hits the age of 30. After this point, every age increment sees their premiums rise.
Those aged 30 to 39 see their premiums rise by about 22%, from £590 to £717.
Drivers aged 40 to 49 see their car insurance almost double, shooting up 46% from £435 to £634.
Those aged 50 to 64 face increases of about 71%, with premiums rising from £318 to £554.
And those over 65 face the biggest increase of all – a whopping 77% from £296 to £525.
Two models of cars account for over one in five of all telematics policies in the UK. Vauxhall Corsas represent 12% of telematics policies and Ford Fiesta’s make up 9%.
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, said: “Although telematics policies can generally benefit younger age groups, our research shows that it can have the opposite effect on older drivers. In some cases, premiums can rise by as much as £200, which is just under half the average cost of a premium in the third quarter of this year.
“If you’re under the age of 24, telematics could be a good option, with potential savings of up to £855. If you’re an older driver however, a telematics policy may not be the most cost-efficient way to take out a car insurance policy, which is why shopping around is so important - doing so can save you up to £250.