The AA has warned car insurance holders that premiums are increasing and will probably continue to do so. The AA revealed that the average quote for fully comprehensive yearly cover increased by 3.1% or in financial terms £22 over the last quarter.

Director of AA Insurance believed that despite higher prices, the car insurance industry is still losing money. AA also discovered that insurance premiums presented a gap between the sexes, which had increased by 59% since 2003, with costs rising for newly qualified young men. However, the AA exposed that prices were dropping for female drivers.

It was also found that the average quote for third party, fire and theft cover decreased by 0.6% to £879. Therefore, as a result insurance providers are becoming hesitant to sell such policies to new or young drivers.