Cost of car cover creeps up

Wednesday, 13 February 2008 12:00

Average car insurance premiums for UK motorists increased by an average of 4.5 per cent in the second half of 2007 alone.

That is according to research from price comparison site MoneySupermarket.com, which finds the average premium stood at £303 over the period.

This marks a steady increase from the figure of £290 recorded through the whole of 2006 and the first half of 2007.

However, cheaper deals are still out there for those willing to investigate their options.

The price comparison sites finds some 64 different providers were offering the best deal to motorists between March and September 2007 - with Swiftcover and the Post Office occupying the top spot more often than any other provider.

"As an internet-only provider, Swiftcover has a price advantage over many of its rivals because its overheads are so low. But it is great to see the Post Office and the RAC also being very competitive," said Richard Mason, director of insurance at MoneySupermarket.

"The key thing for drivers is that 64 different providers are successfully competing to produce the cheapest premiums for them. The market is not monopolised by a handful of providers any more and this can only be good news for motorists."

The research also finds it is cheaper to be a female driver.

While premiums for the fairer sex increased by 4.1 per cent over the second half of last year, they are still lower than those for men - at an average of £279.

"Men are continuing to pay about £40 more for their insurance than women, but this has as much to do with the type of cars they drive," explained Mr Mason.

"Men are more prone to buy cars with bigger engines, which then attract higher insurance premiums."

Older drivers, however, are able to secure the best deals.

"Generally motor insurance becomes cheaper as you age," said Mr Mason.

"Yet a fascinating thing about the research was that females in their 30s have consistently been paying less for their insurance than those in their 40s over the past two years," concluded Mr Mason.

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