Car insurance premiums at four-year high, says AA

M25 traffic

The index showed that the average shop around premium jumped by 5.8% over the last quarter.

Average car premiums increased by nearly £35 over the three months ending 31 December, hitting a four-year high, according to the AA's latest British Insurance Premium Index.

The index showed that the average shop around premium jumped by 5.8% over the last quarter to £633.06.

Michael Lloyd, the AA's director of insurance, noted several factors that are influencing car insurance premiums including insurance premium tax (IPT) and whiplash.

Increases
He said: "Uninsured driving is rising; partly I

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