Sainsbury's Bank warns of car insurance renewal hikes

Sainsbury's Bank is urging motorists to review their car insurance premiums carefully the next time their cover comes up for renewal, because despite their circumstances not changing, their premiums could increase and become uncompetitive.

Sainsbury’s Bank, which offers car insurance, reveals that 35% of motorists – around 9.23 million in total – claim that they saw their premiums increase the last time they bought cover.

Furthermore, research from independent research company, Consumer Intelligence, reveals that between the period August and December 2004, a third of all leading insurers increased their online car insurance quotes.

Joanne Mallon, car insurance manager, Sainsbury’s Bank said: "Some insurers entice motorists to take out their cover by offering very competitive premiums and then increase them substantially when it is time for the customer to renew their policy – even though their circumstances have not changed. Motorists need to keep a close eye on their premiums to make sure that they are competitively priced."