Car insurance premiums down 3.1%

| February 19, 2009 | 0 Comments
Car insurance premiums down 3.1%

Motor insurance premiums dropped 3.1% in the six months to 31 December 2008, according to figures from Sainsbury’s Bank.

The supermarket insurance provider said annual car insurance premiums fell to an average of £498.22 in December 2008, compared to £514.16 in June 2008.

However, the bank warned that premiums are likely to rise again this year due to an increase in costs associated with personal injury claims.

Injury claims increased 22% last year to over £6 billion, and are expected to rise further this year.

And despite the price decrease over the second half of 2008, prices over the full year increased £0.96 compared to 2007.

Joanne Mallon, Sainsbury’s Car Insurance manager, said: “Premiums could rise as a result of the rising cost of personal injury claims and also repairs.”

She added: “The average motorist is still looking at around £500 to insure their car so it is important for them to shop around for competitive insurance.

“However, motorists should be aware that paying a lower premium does not mean they have to forfeit good cover - by shopping around you can find both.

“Just make sure that when comparing car insurance policies, you do so on a like-for-like basis.”

In related news, Sainsbury’s Car Insurance estimated that the UK’s snowfall earlier this month cost car insurers £63 million.

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