Car insurance premiums increase
Published On 3 October 2006
Car insurance premiums are on the rise and motorists are being urged to shop around to ensure they are getting the best deal on their policy. The latest Sainsbury’s Bank car insurance premium index reveals that the online cost of average car insurance over the last six months between January and July has increased from £462.15 to £466.63.
This increase could rise even further over the next few months and will add to the escalating cost of keeping a vehicle on the road, especially if petrol costs continue to rise.
However, motorists are being encouraged to shop around rather than simply accepting their renewal quote. Strong competition in the industry means that some insurance providers offer significant discounts for new customers. Drivers should also consider increasing their excess or protecting their no-claims bonuses to help lower annual policy costs.
Richard Clark, Sainsbury's car insurance manager said: "There is strong competition in the car insurance industry so it pays to keep a close eye on your premiums and be prepared to shop around. Sadly, many motorists don't do this and they are potentially losing out on large savings, in some cases well over £100."
