Older drivers have seen their insurance premiums rise at the fastest rate in almost a decade.

New rules designed to help vulnerable customers have caused prices to spike for motorists aged over 50. Older policyholders have also been hit by rising home insurance costs.

Since January insurers have been banned from offering cheaper deals to new customers than existing ones.

The average home insurance premium has since increased by 9.1pc to £154 while the average motor premium climbed 4.9pc to £705, according to Consumer Intelligence, an analyst. This was the largest increase in eight years.

Over-50s have been disproportionately impacted and have seen the biggest increase in costs of any age group. Home insurance for this group climbed by 10.9pc in January to £161 on average, while car insurance is 7.2pc higher, with the average premium now standing at £360.

This is despite the Financial Conduct Authority, the City watchdog, insisting that the banning of the so-called “loyalty penalty” would save existing customers up to £200 a year.

Older motorists and homeowners have been hardest hit by the changes as insurers had previously targeted this group with the cheapest offers, knowing they were least likely to switch again in future.

Source: Telegraph.co.uk