Car insurance premiums rise by over 5%

In the space of a year, the average car insurance premium has increased by 5.24%. The latest Sainsbury’s Car Insurance Index reveals that in December 2007, the average car insurance premium was £497.26, compared to £472.52 in December 2006 (an increase of 5.24%).

The index reports significant differences in premium increases based on age in the last twelve months. Those motorists aged between 40 and 50 saw an average rise of 7%, the highest of any age group, higher even than the under 25s at 6.59%. Those motorists aged 65 and over saw the lowest rise in premiums at 4.14%.

Joanne Mallon, Sainsbury’s Car Insurance Manager said:”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.

"Cover and benefits vary dramatically between insurers but unfortunately, as many as one in five motorists only obtain one quote when they buy car insurance, many saying they can’t be bothered to shop around or that they don’t have enough time to do this. Missing out on a cost saving is one thing but not taking the time to make sure you've got good quality cover could turn out to be a major regret.

"When comparing policies do so with a like for like approach, there's no point comparing apples and pears, it's worth considering why the cheapest policy is so cheap, you may find you're not just compromising on service but cover too."

The Index reveals that men continue to pay more for their car insurance than women on average - £525.35 compared with £453.38, and that the most expensive cover is for those motorists aged under 25 where the average premium is now around £1,256. The average motorist aged over 50 pays £333, which is the lowest for any age group.

Mallon continues: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs. However, given that nearly 70% of us admit to some form of potentially dangerous activity whilst driving such as eating or using mobile phones, by cutting out these practices we can reduce the chances of being involved in an accident.“

In addition, Sainsbury’s also offers motorists an extensive range of cover and benefits. This includes a courtesy car when using one of its recommended repairers (comprehensive cover only) and a no claim discount of 70% if you take out a policy and have not made a claim in the past five years, rising to 75% after a further five years’ claim free driving with Sainsbury’s Car Insurance. It is also one of only a few providers to offer new for old replacement child car seats after an accident as a standard feature of its comprehensive policy, even when there is no perceived damage, as well as support and compensation if you’re a victim of car jacking or road rage.