Average Vehicle Policy Costs Break GBP500 Barrier

Sainsburys Bank has announced that the average cost of car insurance has gone over GBP500 for the first time since they began collating the data.

Over the last year Sainsburys Bank has seen the average premium increase by just short of 6 percent, taking it to almost GBP515. A spokesperson for the bank said that the rising costs are understood to come mainly from the increased cost of claims. Both repairs and personal injury claims are more costly now, leading to the premium increases seen over the last year.

Of course if there are less claims to start with then premiums could come down since Sainsburys Bank along with every other car insurance company would not have to pay out as much. Driving with more care would help this, especially regarding the use of mobile phones whilst driving.