Car insurance getting cheaper

Last updated at 09:24 19 April 2006

Car insurance premiums are falling, with the biggest decreases coming for elderly motorists, it was revealed today.

The average premium fell from £470.17 last August to £462.15 this January, Sainsbury's Bank said.

For the over-65s, premiums came down from £342.49 in August to £327.13 in January - a dip of nearly 4.5 per cent.

Scottish motorists enjoyed the biggest fall in premiums, which were down almost 3 per cent.

London is the most expensive place to insure a car, with average premiums of £559.31 in January.

The cheapest area is East Anglia where motorists have to fork out an average of only £326.15.

But East Anglia was one of only two places - the other was north east England - where premiums rose between August and January.

Sainsbury's car insurance manager Richard Clark said: "Competition in the car insurance marketplace is strong so it pays to shop around for cover.

"However, despite this, we estimate that as many as 19 per cent of motorists only obtain one quote when they purchase car insurance. Indeed, we know that 48 per cent simply renew their existing policy."

AUG 2005 JAN 2006 % CHANGE

Under 25s: £1,091 £1047.97 minus 3.9%

Under 40s £557.97 £549.13 minus 1.58%

Over 50s £317.65 £311.92 minus 1.8%

Over 65s £342.49 £327.13 minus 4.48%

East Anglia £318.04 £326.15 up 2.55%

Scotland £350.29 £339.91 minus 2.96%

South West £370.97 £366.17 minus 1.29%

Wales £372.58 £362.38 minus 2.73%

South East £420.98 £417.45 minus 0.84%

Midlands £434.63 £422.51 minus 2.8%

North East £435.90 £437.67 up 0.4%

North West £543.09 £532.33 minus 1.98%

London £573.07 £559.31 minus 2.4%

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