Consumers hit by further car insurance increases

Published On 20 February 2007
Forms There was a trend for increasing car premiums throughout 2006, according to new industry research.

Figures from Sainsbury's new car insurance index tracked online premiums over a six-month period in 2006 and found a steadily rising pattern.

At the beginning of the year in January, the average premium was £462.72 but this increased to £466.63 by July and was up to £472.52 by December.

During the whole of 2006, the average car premium increased by 2.1 per cent or £9.80.

Steve Johnson, Sainsbury's Bank spokesman, 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."

One of the largest factors which affected the price of car insurance premiums was the age old gender divide debate. Men paid an average premium of £499.06 while women fared better with an average insurance deal of £434.46.

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