The average
car insurance premium increased nearly six per cent over the course of the last year, according to Sainsbury's Bank.
Research from the firm has shown that between July 2007 and June 2008, typical premiums rose 5.8 per cent, standing at £514.36 by the end of the period.
In July 2007, average policy cost £486.13.
The bank noted that it is the first time the index has breached the £500 barrier and also announced that cover inflation appears to have hit older motorists the hardest.
Research showed that motorists over the age of 65 saw averages of ten per cent, compared to the 2.27 witnessed by those under the age of 25.
Sainsbury's Car Insurance manager Joanne Mallon commented: "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."
Last month, the group warned motorists of the need for cover after research indicated that 65 per cent of motorists had driven while performing actions that may increase the risk they pose to other drivers.
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