According to the Sainsbury’s Car Insurance Index the average car insurance premium has increased by 5.24% in the space of the last year.

The index provides an independent analysis of the cheap car insurance premiums available online from a number of different providers. It has revealed that the average car insurance premium was £497.26 in December 2007, compares to £472.52 in December 2006, this represents an increase of 5.24%.

The index also highlighted that drivers aged between 40 and 50 saw their premium rise an average of 7%, this is the largest rise seen in any age group. This figure was even higher than the under 25 bracket which saw a 6.59% increase. Drivers who are aged 65 plus saw the lowest premium rise at 4.14%.

Women still receive cheaper premiums than men, £453.38 average compared with £525.35. The most expensive cover on the market was for the under 25s where the average premium is an average of £1,256.