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Car insurance premiums up eight per cent year-on-year

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Car insurance premiums rose by eight per cent year-on-year in May, according to analysis of 1.9 million quotes by MoneySuperMarket.

The average annual premium is now £443, up from £411 in May 2014. Car insurance premiums had been dropping year-on-year since 2011, falling by over a quarter (26 per cent) between May 2011 and May 2014.

However, 2015’s figures buck the trend, showing an eight per cent increase since May 2014 – adding £32 to a typical policy.

Kevin Pratt, insurance expert at MoneySuperMarket, said: “Insurance premiums have been on a welcome downward spiral, but it looks like the end of a happy ride for British motorists.

“One reason for premiums creeping up is the continued high level of compensation claims for whiplash and other injuries sustained in car accidents. The Government is keen to tackle the problem of fraudulent claims and has recently introduced a series of measures in an attempt to curb our compensation culture; however the number – and value of – claims has not fallen as far as the industry expected, and insurers are filling this gap by hiking premiums.”

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