Car insurance premiums 'on the rise'

Posted :10-09-2007

The results of Sainsbury's Bank Car Insurance Index have indicated that the cost of motor insurance premiums is steadily rising, it has been revealed.

July 2007's average premium stood at £486.43, a 2.9 per cent increase from December 2006 and a 4.2 per cent rise from last July.

As such, the average motor insurance premium rose by some £19.80 over the year-long period.

Sainsbury's Car Insurance manager Lucy Hunter said: "Premiums have been rising steadily and it has been predicted that this year, they could increase by as much as ten per cent. However, by shopping around, you can still reduce your premiums significantly."

Ms Hunter added that many motorists are not prepared to do this, noting that one in five drivers only obtained one quote when they last bought motor insurance.

It was recently reported by Abbey that some 2.9 million consumers will renew their motor insurance in September, seeing the month as the start of the year - as it is in schools and universities.


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