Car Insurance - Fall and rise of car insurance premiums

Recent figures have revealed that car insurance premiums fell by more than 3 per cent, in the last six months of 2008.

Car insurance provider, Sainsbury’s Car Insurance, found that the average motor insurance premium, in June 2008 was, £514.16, which is 3.1 per cent higher than the figure in December of the same year at £498.22.

But despite the fall that was seen last year, a rise in premiums could take place this year due to the increase in personal injury claims, which rose by 22 per cent and amounting to £6 billion, last year.

Joanne Mallon manager of Sainsbury’s car insurance, said: "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."

Speaking on the rise in personal injury claims, Ms Mallon added: "Premiums could rise as a result of the rising cost of personal injury claims and also repairs.

"However, given that around two thirds of motorists admit to some form of potentially dangerous activity whilst driving such as eating or using mobile phones, by cutting out these practices we can reduce the chance of being involved in an accident.”