Car insurance premiums have risen again during this quarter, the latest figures from the AA British Insurance Premium Index have shown.

The index, which tracks the premiums quoted by UK insurers, found that the cost of car insurance rose by 1.41 per cent in the last three months, with premiums for young drivers seeing the greatest rise – up by 4.62 per cent.

Commenting on the new figures, AA Insurance's managing director Kevin Sinclair said that the rises were not unexpected.

"It has long been clear that the increasing cost of meeting both accident damage and personal injury claims would eventually have to be absorbed by increased premiums," he said.

"The increase is long overdue. Premiums have been kept artificially low by the entry of new insurers seeking market share and the growth of internet sales, coupled with underlying poor results hitting insurers accounts."

In contrast, the figures also revealed that the cost of home insurance fell in the last quarter by 0.45 per cent, after a general upward trend in costs.

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