Car insurance hike blamed on compensation culture

CAR insurance premiums soared by nearly 20 per cent during 2009 as the UK's growing compensation culture pushed up insurers' costs, research showed today.

The cost of comprehensive motor insurance jumped by a record 18.7 per cent during the year, rising by 7.2 per cent in the final quarter, to leave average premiums at just over 1,000, according to AA Insurance.

The group warned that premiums looked set to continue rising during the coming year.