Motorists spending £1.2 billion too much on car insurance

Posted :13-06-2005

UK motorists are paying £1.2 billion too much for their car insurance, a new survey claims.

Research by Sainsbury's Bank suggests that switching to the most competitive insurers could save millions of British drivers an average of £108.55 a year.

The bank has launched a new Car Insurance Index to track premiums across the market and better inform consumers about their insurance options.

"The car insurance industry is very competitive, which is good news for motorists as they can save a lot of money by shopping around," said Joanne Mallon, Sainsbury's Bank car insurance manager.

"Sadly, despite this, one in five motorists obtains only one quote when they buy car insurance."

The Sainsbury's Index found that the average driver in the UK is paying £458.92 a year for their car insurance, but most could save money by switching to a cheaper deal with another insurer.

The insurer claims that drivers with policies from the most expensive 25 per cent of insurers paid over £50 a year more than the UK average for their cover, while motorists with cover from the cheapest 25 per cent paid an average of just £403.51.

The Sainsbury's study also found that women pay on average £92 less for their insurance.

Age also affected premiums, with motorists under 25 paying around £917.59 for their cover.

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