Everyone is paying more for their insurance due to the rise in personal injury claims, the ABI has said.
The rise of Britain's "compensation culture" has resulted in people having to pay more for their car insurance, an industry body has suggested.
According to the Association of British Insurers (ABI), payouts for personal injuries suffered by members of the public has led to a general rise in premiums.
The organisation made the comments in the wake of new figures from Sainsbury's, which showed that the annual cost of the average car insurance policy has risen from £486 to £514 over the past 12 months.
Malcolm Tarling, spokesperson for the ABI, said: "Premiums reflect claims and the fact is the main driver for motor insurance premiums in recent years has been the increase in the cost of personal injury awards, which have been rising significantly."
However, he added that bargains could still be found for savvy car insurance buyers. "Motor insurance always has been and remains a very competitive market, and people can and should shop around to get the best rates," he commented.
"There remains plenty of companies out there willing to provide competitive insurance but at the end of the day the costs of insurance across the board is going to be affected by the cost of claims."
The ABI currently represents firms covering 94 percent of insurance products currently sold in the UK.
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