Car insurance rates rose by the end of 2011

By Tom Farley, Thu 19 Jan 2012 - Published in Car Insurance

Car insurance rates rose again in the last quarter of 2011 following a brief stall, according to new research by the AA.

The company's British Insurance Premium Index found that there was a 5.4 per cent increase over the last three months of last year. This rise added to an annual increase of 15.3 per cent for 2011.

Simon Douglas, director of AA Insurance, said: "I expected a much smaller rise, especially following the small fall in premiums during the third quarter of 2011. The difference shows that the cheaper deals are disappearing. Young drivers seem to be the biggest losers with a higher than average increase for them."

It was recently found that people were attempting to make fraudulent whiplash claims in order to receive compensation following car accidents.

The Transport Committee called on the government to scrutinise the system within the country in a bid to stop this culture from continuing.

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