UK Car Insurance News

October 03, 2005

 

UK motorists urged to shop around to beat rising insurance costs

New findings from the Sainsbury?s Car Insurance Index show that the cost of insuring your car could be rising rapidly unless you take some simple steps to ensure you get the best deal.

Sainsbury's Index, which tracks telephone car insurance industry premiums on a quarterly basis, reveals that the average car insurance premium in July 2005 was £490.13, compared with £465.18 in April, an increase of 5.09% in just four months. Sainsbury?s Bank is urging motorists to shop around more for competitive cover in order to offset this rise in premiums.

Again, motorists under the age of 25 have seen the biggest increases as their average premiums have jumped from an average of £851.83 in April to an average of £1,078.77 in July ? a rise of 26.7%. This compares to a fall in premiums of 11.1% and 4.1% for motorists aged over 50 and 65 respectively.

Further research carried out by the bank in March 2005 indicates that over five million motorists only obtained one quote the last time they bought cover. Independent research by Consumer Intelligence shows that Sainsbury?s Bank consistently offers some of the most competitive premiums available and that motorists switching to them could save up to £180.

Joanne Mallon, Sainsbury?s car insurance manager said: ?Insuring your car equates to around 22% of the total annual cost of driving but by shopping around, it is one of the easiest expenses to cut so it is certainly worthwhile spending a little more time on the phone or online".

?Some motorists such as the over 50s and female drivers could actually find that premiums have fallen recently so a little shopping around could save them even more.?

Sainsbury?s Car Insurance Index also indicates that the average premium for male motorists in July was £553.35, an increase of 8.2% from April. The average premium for women in July was £409.26, a fall of 3.1% on April.

Looking on a regional basis, based on 50 different risk profiles, the Index suggests that motorists in East Anglia pay around £298.51 for their car insurance - the lowest in the country. The Midlands is the most expensive place for car insurance where the average premium is £698.52.

posted by UK Insurance Index  @ 11:45 AM

News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current.