Car insurance costs up 5.8%
Monday, 11 Aug 2008 12:17
A rise in the cost of claims has pushed up car insurance premiums by 5.8 per cent from last year, a study has found.
The average car insurance premium is now £514.36, according to Sainsbury's car insurance index, the first time it has exceeded £500 since the measure was launched in 2005.
Joanne Mallon, Sainsbury’s car insurance manager, said: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs."
The index reports significant differences in premium increases based on age in the last 12 months.
Motorists aged over 65 saw an average rise of ten per cent, the highest of any age group, while motorists aged under 25 who typically pay the most saw their premiums rise by just by 2.47 per cent since July 2007. This was the lowest of any age group.
Men continue to pay more for their car insurance than women on average - £540.49 compared with £470.47.
Ms Mallon added: "Given that car insurance premiums are rising and the cost of driving is now at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance."