Sainsbury’s Index Reflects The Rising Cost Of Car Insurance
11 September 2007 / by None
The cost of car insurance is steadily increasing according to the Sainsbury’s Bank Car Insurance Index. The index analyses online car insurance premiums across the market.
It reveals that the average premium price in July was £486.43, an increase of 2.9 per cent compared with December 2006 and 4.2 per cent compared with July 2006. Therefore, the average car insurance premium has increased by £19.80 in the July 2006 to July 2007 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 10 per cent.”
Gender and age continue to affect the price of car insurance premiums. The average premium price for men is £518.46 compared with £442.28 for women. And, compared with July 2006, July 2007 premiums increased by 5.2 per cent compared with 3.1 per cent for women.
Under 25s, who have make the highest number of car insurance claims have seen the greatest increase in premiums, up 11.2 per cent compared with July 2006. By contrast, over 65s saw a mere 2.7 per cent increase, the lowest increase across the age brackets.
The company suggests that motorists make the effort to compare premiums to ensure they are finding the most competitively priced deals.
“Unfortunately, many motorists are not prepared to do this. Our research shows that one in five motorists only obtained one quote the last time they bought car insurance and of those motorists who did not obtain more quotes, 19% said it was because they could not be bothered or didn’t have enough time,” said Ms Hunter.