Car insurance ‘getting pricier’

Car insurance premiums are getting more expensive, research has shown.

Figures from Moneysupermarket.com, a price comparison website, reveal average premiums rose 4.5 per cent in the second half of last year.

The average lowest premium was flat at £290 from 2006 through the first half of 2007, but increased to £303 in the second six months of the year.

Moneysupermarket.com research shows that 64 different providers came in with the cheapest quote at some stage.

"As an internet-only provider, Swiftcover has a price advantage over many of its rivals because its overheads are so low," said Richard Mason, the website’s director of insurance. "But it is great to see the Post Office and the RAC also being very competitive."

He added: "The market is not monopolised by a handful of providers any more and this can only be good news for motorists."

Drivers are always looking for the best quote, but experts warn that cheaper policies might not offer the same level of cover.

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