New Index Detects Car Insurance Premiums Rise

By Mark Harris
Published on 11 Aug 2008
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New Index Detects Car Insurance Premiums Rise

Cover is around six percent more costly than it was 12 months ago, Sainsbury's claims.

The average car insurance premium costs six percent more than it did last year, new figures from Sainsbury's show.

According to the firm's new Car Insurance Index, typical cover now costs £514.36; last summer, the total stood at just £486.13. Sainsbury's also said that this is the first time on record that the average car insurance deal now costs in excess of £500.

Joanne Mallon, Sainsbury's Car Insurance manager, said: "Given that car insurance premiums are rising and the cost of driving is now at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance.

"However, accepting a lower premium does not mean that you have to sacrifice quality cover - by shopping around you can find both. Just make sure, when comparing car insurance policies, that you do this on a like-for-like basis."

Further findings from the new index show that men continue to pay higher premiums than women, with the annual price disparity standing at around £70. Drivers aged under 25 were also found to pay more than three times more than over-50s - although the rate of premiums increase for young drivers was found to be the lowest of all age groups.

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