New research reveals that car insurance premiums have risen by nearly 6 percent since June 2007, bumping the average premium to over £500.

According to Sainsbury's Car Insurance Index, car premiums across the market have risen significantly. The study carried out a comprehensive independent analysis of online car insurance premiums between July 2007 and June 2008- revealing a rise of 5.8 percent.

The hike in car premiums has caused the average cost of insurance to exceed £500- the first time it has done so since June 2005.

Shockingly the under 25s on average are being charged £1,249.56 for 12 months of insurance cover, while the over 50’s face an average charge of just £347.45- the lowest car premium for any age group.

Although under 25s are still paying the most for their car insurance and have experienced increases of around 2.47 percent since July 2007, it is motorists over 65 suffering the greatest from the rising cost of car insurance; with a 10 percent added cost to their car insurance in the past 12 months.

The report also highlights that men on average are paying around £540.49 for their car insurance, compared to a lower £470.47 for women.

“There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs,” says Joanne Mallon, Sainsbury's Car Insurance Manager.

“However, given that nearly 65 percent of motorists admit to some form of potentially dangerous activity whilst driving such as eating or using mobile phones, by cutting out these practices we can reduce the chance of being involved in an accident.”

Joanna adds that the rising cost of driving makes it even more important to shop around for a good deal on your car insurance.

“However, accepting a lower premium does not mean that you have to sacrifice quality cover - by shopping around you can find both. Just make sure, when comparing car insurance policies, that you do this on a like-for-like basis,” adds Mallon.