Posted on April 12 2011 by Melissa Carter

Car insurance premiums rise by 40 per cent

Car insurance premiums have risen by more than 40 per cent over the past year, taking the average cost of a policy to £892, according to a closely watched index.

This is the biggest annual increase ever recorded by the AA Insurance Index, which has been tracking the quarterly movement of car and home insurance premiums since 1994.

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