12 August 2008
British motorists have seen the average cost of car insurance rise by almost 6% in the last year, according to research from Sainsbury's Bank. The financial services provider found that in June 2008, the average annual car insurance premium was £514.36, compared to £486.13 in July 2007. Since Sainsbury's first launched its Car Insurance Index in June 2005, this year represents the first time the average premium has risen above £500. The research also revealed that motorists over the age of 65 have seen the biggest jump in their car insurance costs, rising 10% over the last year. Under-25s have seen the smallest increase at just 2.75%. However, they still pay the highest premiums, with the average annual deal standing at £1,249.56. Joanne Mallon, Manager of Sainsbury's Car Insurance, said: "Given that car insurance premiums are rising and the cost of driving is now at its highest for a number of years, it is all the more important for motorists to shop around for competitive insurance." Meanwhile, drivers are being advised to avoid making a claim on their car insurance by refraining from driving while tired. According to the Institute of Advanced Motorists, driver fatigue is as dangerous as alcohol on the roads.