Elderly drivers are paying more for their car insurance because they fail to source the cheapest deals online, new research suggests.

Reluctance to use online comparison websites which find the cheapest deals means those aged 65 and over have seen the biggest rise in their car insurance premiums.

They have seen an average rise of 10 per cent in the last 12 months.

The findings showed average premiums rose 5.8 per cent between July 2007 and June 2008.

Younger drivers under the age of 25 pay the highest premiums but the increase for this age group has only been 2.47 per cent in the last 12 months.

A total of 60 per cent of car insurance is bought through comparison websites which can search for the cheapest deals. The older generation are less likely to use such sites.