Steady trend in rising premiums

The Sainsbury’s Car Insurance Index which tracks online premiums over a six month period, reveals that during 2006, there was a steady trend of rising car insurance premiums. In January 2006, the average premium was £462.72, by July this had risen to £466.63 and by the end of the year it had reached £472.52. Over the 12 month period, the average car insurance premium increased by £9.80, or 2.1%.

Gender continues to have an impact on how much you pay for your car insurance, with the average premium for men being £499.06 as opposed to £434.46 for women. On an age basis, motorists under 25 saw the biggest increase in their premiums, rising by 5.8%, but motorists aged over 65 saw the cost of their car insurance fall by 0.5%. The differences in age may be because younger drivers are responsible for the highest frequency of car insurance claims.

Steve Johnson, head of car insurance, Sainsbury's Bank said: “It always pays to keep a close eye on your car insurance premiums and shop around to make sure that you are paying a competitive rate because you could enjoy significant savings of over £100.”