Car insurance premiums rise by nearly 6% in a year

Between July 2007 and June 2008, the average car insurance premium has increased by 5.8%. The latest Sainsbury's Car Insurance Index, which provides a comprehensive independent analysis of online car insurance premiums across the market reveals that in June 2007, the average car insurance premium was £514.36, compared with £486.13 in July 2007 (an increase of 5.8%). This is the first time since the Index was launched in June 2005 that the average premium has exceeded £500.

The index reports significant differences in premium increases based on age in the last 12 months. Those motorists aged over 65 saw an average rise of 10%, the highest of any age group. Motorists aged under 25 continue to pay the most for their car insurance, but their premiums have only increased by 2.47% since July 2007, the lowest rise for any age group.

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."

The Index reveals that men continue to pay more for their car insurance than women on average - £540.49 compared with £470.47, and that the most expensive cover is for those motorists aged under 25 where the average premium is now £1,249.56. The average motorist aged over 50 pays £347.45, 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 65% of motorists recently surveyed by Sainsbury's Car Insurance 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 chance of being involved in an accident."

In addition, Sainsbury's Car Insurance 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.

For more information, visit sainsburysbank.co.uk