Car insurance premiums 'on the rise'

Car insurance premiums in the UK are being pushed higher by fraud, new research has stated.

New research released today (July 19th) shows that car insurance premiums in the UK are being pushed higher by fraudulent activity.

According to the latest AA British Insurance Premium index, people already possessing or seeking annual insurance cover for their vehicle were hit with additional premiums of more than 11 per cent over the course of the second quarter of 2011.

This represents the largest increase for breakdown car cover customers since the AA's inaugural study some 16 years ago.

And president of the organisation, Edmund King, commented that although the latest British Crime Survey shows that criminal activity in the UK has fallen recently, this gauge fails to take into account "a new 21st century wave of fraud" that is common in the car insurance field and includes providing false details and making illegitimate claims for personal injuries.

Such claims may be in part down to the fact that, according to Credit Action earlier this month (July 1st), the average household in Britain is more than £8,700 in debt.