Car insurance premiums 'rising at fastest rate ever'

Research has shown that car insurance premiums in the UK are increasing at their fastest rate on record.

New research has shown that breakdown car cover premiums are rising at their fastest level ever due to the increasing amount of fraudulent car insurance claims being made in the UK.

According to a report published by the AA last Saturday (September 4th), around five per cent of all drivers under the age of 35 have purposefully been involved in an accident in order to make themselves eligible to claim on their insurance policy.

And, in news that may interest anyone with AA savings, the financier has said this means that young road-users in Britain are being subjected to higher average premiums than ever before.

The average premium rose by more than 30 per cent over the last 12 months, which Simon Douglas, director of insurance at AA, said is unprecedented.

Meanwhile, a study by the Co-operative stated recently that fraudulent claims cost honest car insurance customers around £1.25 billion annually.

By Mark Hornby