Car insurance premiums down 3.1%

by Gill Montia

Story link: Car insurance premiums down 3.1%

Car insurance premiums fell during the last six months of 2008, according to research by Sainsbury’s Financial Services.

The insurer calculates that the average premium for December stood at £498.22 a drop of 3.1% on June of last year, when motorists paid an average £514.16.

However, Sainsbury’s warns that premiums could soon be on the rise because of an increase in personal injury claims which were up 22% in 2008, costing insurers an estimated £6 billion for the year.

The group’s head of car insurance, Joanne Mallon, adds that repairs are also costing more and suggests that “with the average motorist still looking at around £500 to insure their car, it is important for them to shop around”.

This winter’s snowfall will also put pressure on insurers as the recent period of icy roads brought in £63 million worth of car insurance claims in seven days, according to Sainsbury’s.

The insurer estimates that the number of claims for motor accidents between Monday 2nd February and Sunday 8th February will hit 45,000, a 45% rise on the corresponding week of 2008.