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Car insurance costs 'set to rise'

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New figures have revealed that average car insurance premiums fell in the second half of last year, although they are expected to rise during 2009 due to an increase in personal injury claims.

Between June and December 2008 the average premium fell from £514.36 to £498.22 - a drop of more than 3%. However, bucking the trend were drivers aged 17-24 - who saw a rise in premiums of 2.22% - and those aged 65 and over, who saw an increase of 2.6%.

The figures from Sainsbury's Bank showed that on average men continued to pay more for their car insurance than women - £527.40 compared with £463.25.

Motorists aged under 25 paid most for their cover, with the average premium standing at £1,277.33. The average motorist aged 50-64 paid £345.65, which was the lowest for any age group.

Company spokeswoman Joanne Mallon said: "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 while driving, such as eating or using mobile phones, by cutting out these practices we can reduce the chance of being involved in an accident."

© Press Association 2009