From This is Money:
More and more cash-strapped motorists are thought to be failing to renew policies to reduce their bills in the recession.
Around 1.6m are believed to be driving without insurance, leading to an increase of £30 per policy for drivers who do pay.
Premiums are also being pushed up by a rise in the cost of car repairs, and an increase in personal injuries claims and the legal costs that come with them, according to AA Insurance.
A rise in the number of fraudulent claims is also having an effect. The research found that premiums are increasing at their fastest rate for nearly a decade.
Between April and June, the average quote for an annual comprehensive car insurance policy increased by 3.5% to £778.13. Over the past year, premiums have gone up by 11%.
Simon Douglas, of AA Insurance, said: ‘Although the number of accidents on Britain’s roads is thankfully falling, the cost of claims continues to rise – particularly personal injury claims and legal expenses.
‘During…
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