Car insurance premiums are rising at the fastest rate in 15 years, according to the latest data from AA Insurance.

The organisation's British Insurance Premium Index shows the average quoted comprehensive car insurance premium has gone up 5.6 per cent in the last three months alone, while third party and theft quotes have risen 9.3 per cent.

Representatives for AA Insurance say they've recorded the fastest quarterly jump since they started producing the Index in 1994, analysing quotes from over 90 insurance companies and brokers.

Simon Douglas, AA Insurance director, points out that the average quoted premium for an annual comprehensive car insurance policy now stands at over £821, compared to £778 in July 2009 and £721 in October 2008.

"Most drivers will be seeing sharp increases when they renew their annual insurance premiums," he warns, attributing the phenomenon to fraud, theft, uninsured motorists and the costs incurred through surging personal injury claims.

"I estimate that, across the industry, up to £110 is being paid in claims for every £100 taken in premiums," he observes, concluding that insurers "have little choice" but to increase premiums.

AA Insurance's figures show younger drivers are being hardest hit by the price rises.

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