Money News
11th August 2008
Car insurance costs edging up
Higher car insurance premiums are putting additional pressure on motorists who are already struggling with soaring fuel prices, new data has shown.
The latest Sainsbury's Car Insurance Index shows that in June 2007 the average car insurance premium was £486.13.
However, over the following 12 months the average premium has risen by 5.8 per cent to stand at £514.36.
The increase means that the average premium is now above £500 for the first time since the company began compiling its index.
Joanne Mallon, manager of the insurer, 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.
"However, accepting a lower premium does not mean that you have to sacrifice quality cover - by shopping around you can find both. Just make sure, when comparing car insurance policies, that you do this on a like-for-like basis."
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