Research from Consumer Intelligence has shown the cost of the average
car insurance policy has risen by 20 per cent over the last year to now stand at £564.69.
Neil Greig, director of policy and research at the Institute of Advanced Motorists, said one way to tackle this trend is to purchase a vehicle in a lower insurance bracket or one that is more environmentally friendly.
He commented: "The cost of claims is rising all the time due to these no-win no-fee claims. People now also claim for things they didn't use to. Maybe they claim more during the recession, which I can certainly see happening."
According to Consumer Intelligence, younger drivers have been worst hit by car insurance price increases over the last year, with average annual insurance policy increases of 24.87 per cent for 17 to 24-year-olds.
The report showed average policy prices rose from £1,275.60 in January 2009 to £1,489.44 by December.
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