Car insurance premiums are rising at their fastest rate in a decade, according to an AA report.

According to the latest benchmark AA British Insurance Premium Index, car insurance premiums rose by 3.5% in the second quarter of 2009, and 11% over the past year. The average premium for comprehensive car insurance increased by 3.5% between April and June this year to an average £778.13, while premiums for Third Party, Fire and Theft, typically bought by young and inexperienced drivers, went up by 4.6% over the quarter to £968.22.

The AA said theft, fraud, personal injury claims and legal expenses have all contributed to the rise in premiums, with personal injury claims expected to hit £10.9bn by 2012.

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The Co-operative Bank has been named the UK’s best financial services provider at the 2009 Which? awards.

The ethical high street bank was praised for its range of financial services and high standards of customer service.

At the awards, held earlier this month, the bank was said to have successfully weathered the storm of the current financial crisis, and to have won the trust of its customers through high standards of service. It was also praised for its comprehensive range of current accounts, mortgages and savings products, which offered “value for money”.

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Millions of people could be invalidating their home insurance by leaving windows open during the summer months even when they are away from the house. One leading insurer has said.

In a survey of 2,000 people by Swinton Insurance, 81% of those interviewed were unaware that leaving windows open when out of the house could invalidate their home insurance, and 72% admitted to leaving windows when they were away from the house in the last month.

23% said they were worried about leaving pets alone in unventilated rooms in the hot weather, and left a window open to let some cool air in.

Steve Chelton, from Swinton said: “Each year there are thousands of burglaries as result of people not carrying out basic safety measures, such as locking window and doors.

“Even though the hot weather makes us relaxed, we should not become complacent with the safety of our homes. At Swinton we advise everyone to ensure that their windows and doors are locked before leaving the house, even if just popping out for a few minutes.

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Airlines are ignoring EU laws by automatically adding travel insurance when customers book flights, a watchdog has found.

According to a new report by the consumer magazine Which? Holiday, four airlines are ignoring an EU directive issued last November which forbids them from automatically adding extras such as insurance at the time of booking.

Of 11 sites checked by researchers, over a third had flouted the rules. Easyjet, Jet2 and Monarch all automatically add travel insurance policies at the time of booking, costing between £7 and £10.49 per passenger, while Air Berlin automatically adds cancellation insurance for flights that return the same day that they fly out, costing £10.63. To opt out of the insurance consumers must tick a box.

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More than a third of UK adults have admitted they are unable to convert different currencies into sterling when they go abroad and are overspending by a staggering £288 million a year on holiday as a result, a recent Post Office survey has revealed.

According to the report, 44% of holidaymakers don’t actually work out how much they are spending in sterling when they are abroad and 27% of people go over their budget on holiday.

One in five people prefer to go on holiday to places where they understand the currency, while 1.5 million holidaymakers actually avoid travelling to countries with unfamiliar currency, because they believe that working out how much everything costs will be difficult and stressful.

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Insurers are “pressuring” drivers into settling claim just hours after they have had an accident, according to a road safety charity.

When a driver in involved in an accident that was caused by somebody else, they would normally expect to arrange compensation with the other person’s insurer. However, the national road safety charity Brake has warned that crash victims are being encouraged to settle claims quickly before they have a chance to seek legal or medical advice.

Solicitors’ groups have called for tighter regulations surrounding the advice given by insurers in the wake of a road accident.

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As an increasing number of pet owners consider cutting back on pet insurance during the recession, Sainsbury’s Finance has warned that veterinary fees have “risen sharply” over the last few years. Pet owners who fail to insure their animal could face some hefty bills in the coming year, the insurer said.

Joanne Mallon, manager of Sainsbury’s Pet Insurance highlighted the sharp rise in vet fees in recent years. However, research from the firm shows that almost 500,000 people have cancelled their pet insurance policies to save money during the financial downturn. Ms Mallon said that these customers were “leaving themselves exposed to some very large bills”.

Rival insurer More Than also highlighted the expense of sending pets to the vet in a report released last month. According to the firm’s research, the average cost of keeping a medium-size dog healthy throughout its life is £10,039. This figure does not include unplanned trips to the vet.

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Up to 4.8 million UK drivers would be prepared to switch from four wheels to two during the recession, according to a new survey by the Post Office.

The majority of these cited reduced costs as a reason for ditching their car in favour of a moped or motorcycle, with 31% of drivers attracted by fuel efficiency. A further 27% of drivers believe that riding on two wheels is an easier way of getting around.

Whilst UK car sales are in stark decline during the recession, registrations of motorbikes and mopeds are increasing year-on-year, with a 24% increase in these types of vehicles on the road this spring. This trend is hardly surprising when you consider the benefits of riding a motorised two-wheel vehicle. As well as halving their fuel consumption in miles per gallon on a moped or lightweight motorcycle, motorists can benefit from road tax starting from just £15 a year, free parking in the majority of British towns and cities, no congestion charges and lower insurance premiums.

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Those convicted of dangerous driving must offer proof that they have learnt to drive safely on the roads before they can expect cheaper driving insurance, AA Insurance has said.

The AA is introducing a new scheme to encourage safe driving. Run by the AA Charitable Trust, the scheme will see dangerous drivers take practical lessons on road safety. Young drivers with a poor track record will be put forward for the course of lessons by police with the aim of encouraging them to become safer drivers.

However, AA head of road safety Andrew Howard says that simply attending the course will not guarantee lower insurance premiums. Rather, attendees need to prove that the standard of their driving has improved before they will see a drop in the cost of their car insurance.

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Many Britons are reducing their level of car insurance cover in order to save money during the recession, new research has shown.

According to a report from the British Insurance Brokers Association, a significant number of drivers in the UK are cutting back on their car insurance as the credit crunch continues its grip, but they could end paying expensive bills that could have been covered by more comprehensive cover, the organisation has warned.

BIBA surveyed its members to see how the recession has affected brokers’ business. One in five brokers reported a reduction in the level of cover that their customers purchased since the recession kicked in. The survey found that 96% of these reductions took place in the car insurance and home insurance sectors.

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