Car Insurance Premium Plummets by 3.1%
The latest Sainsbury Car Insurance index reports that the average car insurance premium has dipped by 3.1% between June 2008 and December 2008. However, a note of caution has been issued by the Sainsbury Bank which said that customers should be prepared for a rise in the insurance premiums by this year as personal injury claims and their associated expenses have increased by 22% last year.
Claims for personal injury are expected to rise further. The index also reports major differences in premiums for motorists of various age groups. Motorists in the under-25 age group witnessed an increase of almost 2.22% in their premiums while those over 65 saw an increase of premiums by 2.6%. Premiums for motorists in the other age groups however, witnessed a fall in the premiums.
Joanne Mallon, Sainsbury’s Car Insurance Manager still feels that it is important for the average person to shop around to buy the best insurance deal as £500 is still required to insure cars. Motorists should not be under the opinion that if they pay lower premiums they would have to forfeit good cover. If they do a little bit of homework, then they can find a deal which will have both less premium and good cover.
Mallon also suggests that if motorists can cut down on habits like talking on mobile phones or eating and drinking while driving, then there could be a sharp fall in accident rates.
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