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Car insurance premiums 'hit record highs'

06 Sep 2010

Britain's car insurance customers have seen their premiums rise by a record 11.5 per cent over the past three months, new figures have shown, which may encourage more people to shop online for motor insurance quotes.

According to research by driving organisation the AA, the price of a typical comprehensive car insurance premium, currently around £700, rose by an unprecedented 31 per cent over the last year.

Simon Douglas, the group's director, suggested that, while comparison websites make it easier for drivers to find motor insurance quotes, drivers giving false details on such sites had likely helped increase UK premiums.

"Those who are caught [manipulating information to get a cheaper car insurance quote] will find it extremely difficult and expensive to find an insurer willing to take them in future," he warned.

Meanwhile research from Defaqto has revealed that only one in eight UK motor insurance policies extends its cover to incidents relating to road rage.

Posted by Judith Stevenson