Motor insurance premiums are set to rise due to cover increased claims, according to the UK’s leading car insurer.

The Royal Bank of Scotland, which owns Direct Line and Churchill, has indicated that it may hike the cost of its premiums as Norwich Union has already done.

NU car insurance premiums have risen by an average of 16%, with some drivers seing a 40% increase.

Car insurer Admiral agrees that the price of cover has to go up. Chief executive Harry Engelhardt said: “The number of injury claims is on the rise – it’s a bit of a compensation culture.”