Only Finance.com® - Car insurance rises hit hard

Car Insurance - Car insurance rises hit hard - 26/02/2008

Car insurance is on the increase and it is drivers aged 40-50 who have been hit hardest.

Statistics from Sainsbury's Car Insurance has found that while the average rise of an insurance premium has been 5.24 per cent in the last 12 months, the average for drivers in the 40-50 bracket has rocketed to 7 per cent.

The good news for these drivers however is once they reach the 50-65 bracket they will be paying the lowest premiums on average £353.53 per annum. People in this bracket have also seen their premiums rise the least, up 4.14 per cent on last year.

There is also a discrepancy between male and female insurance claims with women paying £71.97 less than men on average. Insurance also varies according to your location, with those in Northern Ireland and London paying the most for their insurance, while Scotland generally attracts premiums lower than most places in the country.

Sainsbury's Car Insurance manager Joanne Mallon said: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs.

When comparing policies do so with a like for like approach … it's worth considering why the cheapest policy is so cheap, you may find you're not just compromising on service but cover too.

However given that nearly 70 per cent of us admit to some form of potentially dangerous activity while driving, such as eating or using mobile phones, by cutting out these practices we can reduce the chances of being involved in an accident."

Helping to reduce your premium in the first place can help cut costs. Buying a car with a smaller engine or lower insurance grouping is the most effective way to reduce insurance costs. Fitting additional security devices, especially Thatcham approved ones will bring premiums down further. For younger drivers, getting experience is vital to avoiding accidents and gaining a pass plus qualification will help cut your premiums and avoid accidents.

Perhaps unsurprisingly it is the under 25s who make the most accident claims and consequently they pay the highest premiums. They pay an average of £1,255.99 and saw the second highest increase at 6.59 per cent.