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Record rise in insurance premiums

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The average cost of a comprehensive car insurance policy rose by a record 30.9% during the past year, mainly driven by surging levels of fraudulent claims, according to AA Insurance.

Figures showed an 11.5% increase in car insurance costs for those aged under 30 during the past quarter, as this age group is the most likely to be involved in car insurance fraud.

A separate survey found that 5% of drivers under 35 have staged an accident in order to claim insurance payments, while an additional 15% said they will contemplate such a move.

The Association of British Insurers said recently that fraudulent motor insurance claims worth £410 million were discovered by insurers last year.

Simon Douglas, director of AA Insurance, said: "While the organised 'cash for crash' scams that ripped millions of pounds off insurers have made headlines, the problem of car insurance fraud is much deeper and has become one of the principal drivers of insurance premium inflation."

© Press Association 2010