Car insurance premiums rise


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The cost of car insurance premiums has risen by over five per cent in the past year, according to the latest research by Sainsbury's.

In its Car Insurance Index, the company has found that the average premium in December 2007 cost £497.26, compared to £472.52 in December 2006.

The research also revealed that people between 40 and 50 experience the biggest increase, which was around seven per cent, while motorists over 65 saw the lowest rise in premiums.

Commenting on the findings, Sainsbury's Car Insurance manager Joanne Mallon said that the study showed how important it was for consumers to shop around for their cover.

She added: "Missing out on a cost saving is one thing but not taking the time to make sure you've got good quality cover could turn out to be a major regret."

The release of Sainsbury's research follows a recent announcement that it is offering people a five per cent discount on life insurance when they take out the cover via their website before March 24th.

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