Claims for whiplash injuries are forcing up the price of car insurance again, according to the Association of British Insurers.
The average price for an annual comprehensive policy increased by two per cent in the second quarter of 2015, reports the Express website.
The average premium for April, May and June was £367 compared with £356 a year ago.
Average premiums had been falling following a reduction in fixed legal fees for personal injury claims, the ABI said.
But now “climbing personal injury claims are pushing premiums higher,” it reported.
The number of personal injury claims related to road accidents was 12 per cent higher for the year ending April 2015 compared with the previous 12 months.
Rob Cummings, the ABI’s manager for general insurance, said: “Motorists have seen a solid two years of lower insurance premiums as a result of market trends and in the wake of the Government’s reforms to tackle frivolous personal injury claims, and over a billion pounds’ worth of savings have been passed on to customers.
“With pressure on premiums increasing however, it’s important the Government continues its work to tackle the compensation culture and attack the high cost and number of whiplash claims.
“With this in mind, we welcome the Government’s announcement of a review of the activities of claims management companies in the last Budget.”
The AA recently warned that the days of cheap car insurance premiums are over, and further rises are “inevitable”, after an insurance index it runs also found that the cost of car insurance has jumped in recent months.
Last month, insurers said that millions of customers will face higher costs for cover after a hike in taxes charged on insurance products.
Chancellor George Osborne’s summer Budget revealed that insurance premium tax will be increased from 6 per cent to 9.5 per cent from November.
Mr Cummings said: “UK drivers benefit from one of the most competitive motor insurance markets in the world. But with pressure on claims costs and an increase in insurance premium tax adding an additional £12.80 to the cost of the average policy from November, other factors are starting to put up costs.
“This makes action against claims management companies and tackling whiplash claims a key priority.”