Insurance Premiums Falling

SAINSBURY'S BANK CAR INSURANCE PREMIUM INDEX

19 April 2006

· Latest Sainsbury’s Bank Car Insurance Index(1) reveals that motorists aged over 65 saw the biggest fall (nearly 4. 5%) in car insurance premiums

· Motorists could save up to £130(2) by switching to Sainsbury’s car insurance

The Sainsbury’s Bank Car Insurance Index(1) which looks at premiums in a six month period reveals that between August 2005 and January 2006, the average car insurance premium fell slightly from £470.17 to £462.15. However, depending on your age and where you live, premiums may vary more dramatically.

The Index, which tracks car insurance industry premiums for a number of different categories of motorists, reveals(1) that in January this year the average premium for those under the age of 25 was £1,048, down from £1,091 in August 2005. The corresponding figures for motorists aged over 65 were £327.13 and £342.49, a fall of nearly 4.5%, which was the highest for any group of motorists.

On a ....cont/

regional basis, not surprisingly, Londonis the most expensive place in Britainto insure your car, where the average premium in January was £559.31. This compared to £326.15 in East Anglia, where motorists pay the least for insuring their cars.

East Angliaand the North East were the only areas to see car insurance premiums rise between August 2005 and January 2006, and Scotlandsaw the biggest fall (down almost 3%).

Richard Clark, Sainsbury’s car insurance manager said: “Competition in the car insurance marketplace is strong so it pays to shop around for cover. However, despite this, we estimate(3) that as many as 19% of motorists only obtain one quote when they purchase car insurance. Indeed, we know that 48% simply renew their existing policy(4).”

Age of motorist(1)

Average premium in August 2005

Average premium in January 2006

Percentage change

Under 25s

£1091

£1047.97

-3.9%

Under 40s

....cont/

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£557.97

£549.13

-1.58%

Over 50s

£317.65

£311.92

-1.8%

Over 65s

£342.49

£327.13

-4.48%

Location(1)

Average premium in August 2005

Average premium in January 2006

Percentage change

East Anglia

£318.04

£326.15

2.55%

Scotland

£350.29

£339.91

-2.96%

South West

£370.97

£366.17

-1.29%

Wales

£372.58

£362.38

-2.73%

South East

£420.98

...cont/

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£417.45

-0.84%

Midlands

£434.63

£422.51

-2.8%

N East

£435.90

£437.67

0.4%

N West

£543.09

£532.33

-1.98%

London

£573.07

£559.31

-2.4%

Sainsbury’s car insurance offers competitive premiums and could save motorists up to £130(2).

Notes:

(1)Price comparison figures for car insurance premiums based on research conducted by Consumer Intelligence, August 2005 and January 2006.

(2) Price comparison figures based on research conducted by Consumer Intelligence, September 2005 to February 2006.

(3)Based on Research carried out by TNS PhoneBus amongst a representative sample of 625 GB car drivers aged 16+ during 4-6th March 2005.

(4) NOP June 2005

Sainsburys