The latest figures from the AA have revealed that over the last three months of 2010, car insurance prices had risen by approximately 6.4%, adding an average of £51 to the policy that the average driver would pay on comprehensive cover.

Initially, the massive increases had prompted an inquiry by the House of Commons Transport Committee into the car insurance market, the industry largely pointing the finger at fraudsters for the increase in premiums.

Speaking on behalf of the AA, Director Simon Douglas noted that ‘MPs at the inquiry learned Premium Increases have been fuelled by fraud; injury claims; exaggeration of claims; organised ‘cash for crash’ scams; uninsured driving and poor investment returns because of the recession.’

Statistics revealed by the Association of British Insurers has revealed that there are currently 108 fraudulent motor insurance claims per day in the UK, which amounts to a combined value of £1.12 million, and Mr Douglas stated that he believed was ‘just the tip of iceberg’.  He concluded that he hoped ‘as a result of the enquiry, the government is able to help motor insurance stem haemorrhaging costs’

One of the main revelations since the investigation is that continuous insurance enforcement would become law, with it now a legal requirement to insure a car even if it is not being regularly driven.

For more of the latest news regarding motor insurance and breakdown cover UK, and to find out how cheap breakdown cover can be, visit Rescue My Car now by clicking the link here.