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Older drivers see insurance surge

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The cost of car insurance deals are increasing, and older drivers are having to bear the brunt of the increase, research has revealed.

According to a survey by Sainsbury's, average premiums rose 5.8% between July 2007 and June 2008, with the average price now £514.36.

For the first time since the firm launched its index in June 2005 the average price has broken past £500.

The biggest rise was seen among drivers aged over 65, with motorists in this category seeing their car insurance premiums rise by an average of 10% in the last 12 months.

While those aged under 25 pay the most - with premiums of just over £1,249 - this group has seen an average increase of 2.47% in the last year - the lowest of all age groups.

A spokesman for the firm 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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