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Last year car insurance became steadily more expensive

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Car insurance becoming more expensive

Monday, 19 Feb 2007 13:09
Last year car insurance became steadily more expensive, Sainsbury's Bank reveals.

Sainsbury's Car Insurance Index - which looks at how cheap car insurance is over a six month period - shows the average car insurance premium rose 2.1 per cent over 2006.

"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," said Steve Johnson, head of Sainsbury's Bank car insurance.

Figures from the Car Insurance Index show the average premium was £462.72 in January last year. This rose to £466.63 in July and had reached £472.52 by the end of the year.

Motorists under 25 saw their car insurance premiums rise the most at 5.8 per cent, while the cost of car insurance became 0.5 per cent cheaper for motorists over 65.

Men still pay more for car insurance than women, with the average premium for a man at £499.06, compared with £434.46 for a woman.

Average car insurance premiums
  • Under 25s - £1,178.38, up 5.8 per cent on January 2006.
  • Under 40s - £584.85, up 2.9 per cent on January 2006.
  • 40s to 50s - £361.71, up 2.3 per cent on January 2006.
  • Over 50s - £316.42, up one per cent on January 2006.
  • Over 65s - £339.49, down 0.5 per cent on January 2006.

    Click here to compare car insurance
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