Car insurance premiums rise 5.24%

by Gill Montia

Story link: Car insurance premiums rise 5.24%

According to the latest Car Insurance Index published by Sainsbury’s, the average car insurance premium increased by 5.24% in 2007.

In December of last year, the average premium stood at £497.26, compared to £472.52 in December 2006.

The index also highlights the differences in premium based on age; in 2007, motorists aged between 40 and 50 saw an average rise of 7%.

The increase was the highest of any age group and compares with +6.59% for the under 25s.

Motorists aged 65 and over saw the lowest rise in average premium, at 4.14%.

Joanne Mallon, Sainsbury’s Car Insurance Manager says: ”Car insurance premiums continue to rise, which makes it all the more important for motorists to shop around for competitive insurance. The trick is cutting your costs without cutting your cover. Comprehensive can be a loosely used phrase with some comprehensive policies not even providing courtesy cars as standard.”

The Index also confirms that men continue to pay more for their car insurance than women (an average £525.35, compared with £453.38).

Cover for the under 25s now costs the average motorist in that age group around £1,256, while those aged over 50 pays the least, with an average premium of £333.