Car insurance creeps up in 2006

Car insurance premiums rose steadily in 2006, according to new figures from Sainsbury's Bank, underlining the importance for drivers of shopping around for their cover.



In January 2006, the average car insurance premium was £462.72, but by July this had reached £466.63 and by the end of the year it came to £472.52.

This meant that the car insurance premium rose by £9.80 over the 12 months, or 2.1 per cent.

Meanwhile, gender and age continued to play a large part in what drivers are charged for their motor insurance, with the average premium for men standing at £499.06 in 2006, while women got away with paying £434.46 on average.

Drivers aged under 25 were hit with the largest rise in premiums, rising by 5.8 per cent, while drivers aged over 65 saw theirs fall by 0.5 per cent.

Steve Johnson, head of car insurance at Sainsbury's Bank, said: "It always pays to keep a close eye on your car insurance premiums and shop around to make sure that you are paying a competitive rate because you could enjoy significant savings of over £100."

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