Consumer body Which? has reported that the car insurer Admiral charges higher premiums to drivers who have not lived in the UK since birth, which could mean that Admiral is in breach of the 1976 Race Relations Act.

The Which? investigation uncovered that the Admiral group, which includes car insurers Diamond, Bell and elephant.co.uk, added about 18 per cent to the cost of car insurance for motorists not living in the UK all their lives.

Which? requested quotes from four Admiral insurers and 15 other large UK insurers for car insurance. The research found that only the Admiral organisations asked the question, "Have you lived in the UK since birth?" If the answer was no, they charged a higher premium than if the answer was yes.

Having consulted with legal experts on the issue, Which? has said that this "is a clear-cut case of discrimination on the basis of national origin". It said that intends to pass on the details of the investigation to the Equality and Human Rights Commission.

Peter Vicary-Smith, chief executive of Which?, said: "It is outrageous to charge someone more for insurance just because they haven't lived in the UK for their entire lives. We believe this kind of discrimination has been outlawed for decades. We're calling on the Admiral Group to stop this shameful practice immediately."

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