Car insurance premiums still creeping up
Published On 25 February 2008
The average cost of car insurance has increased significantly in the UK, a new study has shown.According to the latest Sainsbury's Car Insurance Index, the typical cost of cover increased from £472.52 in December 2006 to £497.26 in the final month of 2007. This represents an increase of 5.24 per cent.
The research also showed how car insurance premiums vary with age. For people aged under 25, the average premium is now £1,255, compared to £332.80 for people over 50.
However, the study indicated that prices for insurance increased most significantly for the 40s to 50s age group. These people saw their premiums rise by seven per cent over the course of 2007.
"Car insurance premiums continue to rise which makes it all the more important for motorists to shop around for competitive insurance," commented Joanne Mallon, Sainsbury's car insurance manager.
"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."
