
Car insurance has risen by £20 over the past three months, a new index shows.
Insurance premiums continue to become more costly, AA data has shown.
The firm's quarterly British Insurance Premium Index found that car owners have felt the squeeze the most over the three months to June, with £20 being added to each premium. The cover now costs around £700 per year, on average.
Once more, it is young drivers who face the steepest increase in costs, with a £45 increase marked by the AA. This group - who, statistics show, represent a bigger accident risk than older motorists - is now paying around £800 per year each for the cover.
The AA's director of insurance, Simon Douglas, commented: "Car insurance costs are spiralling. While the number of casualties on Britain's roads is falling the cost of accidents is rising and young drivers are taking an increasing share of the toll. Insurers are also concerned about rising legal costs and personal injury claims and I expect the upward trend in premiums to continue.
"It's vital that the industry and road safety groups work together to find ways of getting young drivers on the road safely and responsibly - and with affordable insurance premiums."
Elsewhere, the AA found that home buildings insurance now costs an average of £210 for householders - a £1 rise over the first quarter. The Shoparound index, which looks at the three cheapest deals on the market, also rose by £23 for the cover.
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