The cost of car insurance continues to weigh down on motorists, new research shows.

In the latest figures released by Sainsbury’s Car Insurance, it was revealed that the past 12 months have seen the typical motor insurance policy increase by some 5.8 per cent. Last month the average car insurance premium was shown to stand at 514 pounds and 36 pence, up from the 486 pounds and 13 pence recorded in July 2007. The financial services firm also revealed that now is the first time since it began tracking car insurance rates in June 2005 that the average car insurance policy costs more than 500 pounds.

Following on from having to pay more money for their car insurance, motorists may find their ability to manage other spending commitments comes under strain. This could mean that paying utility bills and meeting repayments on credit cards and personal loans is an evermore difficult task.

Meanwhile men were revealed to pay an average of 70 pounds more for car insurance than women as they face costs of 540 pounds and 49 pence, in comparison to 470 pounds and 47 pence by women.

Sainsbury’s Car Insurance also revealed that there have been a number of reasons behind the recent increase in premiums over the last 12 months. Among such factors were a rise in the cost of personal injury claims and repairs.

Commenting on the figures, Joanne Mallon, manager at the insurance provider, said: "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 for competitive 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."

Ms Mallon also pointed to recent research by the firm which showed just under two-thirds of drivers conceded to have been guilty of carrying out a potentially dangerous activity - such as using a mobile phone or eating - while they have been behind the wheel.

In particular it seems that older drivers are facing a significant increase in the financial pressures that car insurance entails. Those motorists over the age of 65 were reported to have seen motor cover rise by 9.99 per cent to stand at 368 pounds in June, with 50 to 64-year-olds facing a rise of 8.9 per cent. Overall, drivers between the ages of 17 and 24 have the costliest insurance cover. Such consumers pay 1,249 pounds, an increase of 2.47 per cent from July 2007.

For those consumers with concerns about their ability to manage rising car insurance costs, taking out a cheap loan might be recommended. By taking out a loan borrowers could find that they can not only meet the cost of cover, but also pay for other spending commitments related to their vehicles such as repairs and MOT. This may prove to be of particular assistance after a recent YouGov study carried out for Britannia Rescue showed 59 per cent of motorists have driven on the minimal amount of petrol over the past three months due to the rising cost of fuel.

For cheap car insurance, compare the market for the best quote.