Car insurance expected to rise

The cost of car insurance premiums fell in the second half of 2008, but forecasts suggests they will start to rise again this year.

Figures show the average premium fell more than 3%, from £514.36 in June 2008 to £498.22 in December 2008, but these are set to rise this year after an increase in personal injury claims and their related costs.

However, not all drivers were enjoying lower car insurance premiums last year. Motorists aged 17-24 saw costs rise by 2.22% in the second half of last year, while drivers aged 65 and above saw premiums increase 2.6%.

The figures from Sainsbury's Bank also reveal that men are continuing to pay more for their car insurance than women at £527.40 compared with £463.25.

The most expensive cover was for motorists aged under 25, where the average premium was £1,277.33, while the average motorist aged 50-64 paid £345.65, which was the lowest for any age group.

A spokeswoman for the company said: "Premiums could rise as a result of the rising cost of personal injury claims and also repairs.

"However, given that two-thirds of motorists admit to some form of potentially dangerous activity while driving by cutting out these practices we can reduce the chance of being involved in an accident."

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