The average cost of comprehensive cover rose by 14.2% between April and June, vastly outstripping the previous rises of 4.3% and 6.3% in the two previous quarters. Prices for comprehensive cover have risen by a whopping 31% over the last 12 months, bringing the average comprehensive premium to £599.

Simon Lamble, product director at Confused.com, said: “This is a massive blow for motorists who have already suffered at the hands of petrol price hikes and insurance premium tax increases, and unfortunately we do not think we’ve seen the worst of it. In the last two years visibility of the market through price comparison sites has kept prices down and driven up competition. In order to secure customers insurers have been forced to repeatedly slash their margins, but inevitably this could not continue.”

He added: “The insurance industry had to pay out £400 million to the Motor Insurance Bureau in 2009 to cover incidents involving uninsured drivers, which translated into £30 on every honest driver’s insurance policy. With insurance costs rising and household budgets being squeezed, consumers are more likely to consider gambling rather than fork out for cover they hope they will never have to call into action.

“It is important to remember that no matter how safe a driver you are, you cannot rely on the same from other people. Only three in five people think they’ll be caught but the harsh truth of the matter is that every three minutes someone is convicted for uninsured driving and the fine and points do not tell the full story of the damage.”

The award was presented during a ceremony at the Royal Albert Hall on July 7.

The insurance firm was given the award for its multi-strand marketing campaign, which used traditional and digital initiatives to help boost its sales by 38.5% in 2009 and increase brand awareness by 90%.

As the UK’s first internet-only insurer, the company embraced social media such as Facebook and Twitter to engage with the public and raise awareness of the brand as well as clocking up more than 80,000 views of its Iggy Pop advertising campaign on youtube.

Tina Shortle, marketing director for swiftcover.com, said: “It is great to win such a coveted award, particularly one that is chosen by our peers and key figures in the insurance industry.

“We are also pleased that the award acknowledges the work we are doing to engage with the public; both our existing policyholders and potential customers. Swiftcover.com believes that building stronger relationships with consumers is vital for a successful insurance market.”

Its top tips include reading the small print to ensure customers understand the terms and conditions and are aware of potential charges. The company suggests people check what type of insurance is provided by the car hire firm. It points out that extra excess cover should be paid for before the car is collected as it is often cheaper when paid for in advance.

Hire car drivers should check the vehicle carefully for any damage before driving away and making sure any defects are noted on the rental agreement. It can be a good idea to photograph any damage found.

When driving abroad, the company suggests drivers familiarise themselves with the rules of the road in the country they are visiting as they vary from place to place.

Ernesto Suarez, chief executive officer at iCarhireinsurance.com, said: “A lot of people find hiring a car confusing. Many are surprised when they are stung with unexpected charges when their flight is delayed and they have to pick up their car outside of the agreed times.

“Others don’t realise that they are liable for the excess payments even if the damage done to the car is not their fault. We have tried to take the mumbo jumbo out of car hire with this guide.”

Kwik-Fit Insurance Services has around 600,000 customers with 1.2 million home, travel and car insurance policies and its revenue for 2009 was £89 million. This would bring Fortis’ annual retail revenues to £189 million. Following the acquisition, Fortis will employ around 4,000 staff.

Barry Smith, chief executive of Fortis UK, said: “This is a great acquisition for Fortis which further strengthens our retail capability and adds a respected business and their powerful brands to our portfolio. There is very good alignment between the businesses with a shared focus on delivering excellent customer service.”

Brendan Devine, managing director of Kwik-Fit Insurance Services said: “Kwik-Fit Insurance Services has seen profitable growth over recent years and being part of the Fortis group will allow us to continue on this journey. This is a great strategic fit for our business and with Fortis being such a large multi-national it gives our people even more scope for further development and career growth.”

The comparison site analysed the average cost of annual car insurance policies for nearly 1.4 million motorists and found that, despite offering the lowest level of cover, third-party only insurance is the most expensive option for motorists. Surprisingly, fully comprehensive policies were the cheapest premiums despite offering the highest level of cover.

The research found that third-party cover costs £1,927 a year on average, 109% more than fully comprehensive insurance at an average of £922 a year. The average premium for third-party fire and theft stands at £1,348, almost 50% more than the cost of fully comprehensive cover.

Motorists aged 40 and over can expect to see a huge 161% price difference between third-party cover and fully comprehensive insurance, with premiums costing £1,600 compared with £613 on average, respectively.

Steve Sweeney, head of car insurance at moneysupermarket.com, said: “Traditionally, motorists assumed a third-party only policy would be cheaper because of the reduced levels of cover. But in recent years drivers with a more ‘risky’ profile, such as younger motorists or those with driving convictions, have opted for this type of cover to keep the cost of motoring down.

“Providers have reacted to this perceived increase in risk by driving up the cost of third-party only insurance. It really does pay to shop around and do the research to find the right car insurance policy for you at the best price.”

More than one in five have raced on a public road as a driver or passenger and one in ten have overtaken another vehicle, at speed, without being able to see what is coming. Worryingly, 58% of young passengers who had been in a car driven by a speeding young driver said they didn’t ask the driver to slow down.

Road crashes are the biggest killer of young people aged 15 to 24 and young drivers are involved in more fatal crashes and more are killed than any other age group of drivers.

Ellen Booth, Brake campaigns officer, said: “Many young people get a thrill from driving fast with their friends in the car, but because of the way young people’s brains develop, they often don’t yet have the ability to control their thrill-seeking tendencies. They often feel invincible and overestimate their power to get out of trouble. Brake is urging the government to take steps now to stop more families suffering the devastation of the death of a teenager.”

The list for women includes accidents in car parks, bumps on roundabouts and prangs at traffic lights. On the other hand, male motorists are more likely than female motorists to have a head-on collision, drive a car up or down an embankment or hit a crash barrier.

Sian Lewis, managing director of Diamond, said: “We hold a vast amount of data on accidents and wanted to see if there was a difference between the sexes. It soon became clear that there was. Women tend to be in more accidents at slower speeds, where cars are close together, while men have more high-speed accidents where it is easy to lose control.

“Our research suggests the way men and women drive is different. Possibly men drive faster and more aggressively than women, while women are more easily distracted than men behind the wheel of car.”

In fact, it isn’t just accidents where male and female motorists differ. There are also differences when it comes to other claims. Overall, women are more likely to have their cars broken into and have something inside stolen. However, men are more likely to have their cars stolen outright. Men’s cars are also more likely to catch fire than women’s and they’re more likely to drive through a flood.

Ms Lewis added: “It’s very strange that men’s cars are more likely to catch fire than women’s, I can’t explain why that would happen. But one reason why women are more likely to have their car broken into is perhaps because they’re more likely to leave expensive items like their handbag or sunglasses on show than men.”

Many of the roles will be based in the company’s general insurance division and will include positions in sales, customer services, claims and technical management. Other roles currently on offer are within various head office functions including marketing, e-commerce, finance and human resources.

The company has been transformed since 2007 when a new board, led by CEO Mike Rogers, was appointed. As well as a new brand image, the company has opened new offices around the UK and made a number of corporate acquisitions including Highway Insurance and former GE Life business Tomorrow.

David Smith, HR director at LV=, said: “LV= is going through a period of significant growth so it’s a very exciting time to join us. Our general insurance operation is a particular hot spot for growth and we are looking for people both with experience in this field but also for individuals who are looking to move into this sector from other careers.

“When many other financial companies are making cutbacks we are actually expanding so this not only means that there is the opportunity to join us but also lots of great career prospects.”

The electronic certificates are emailed directly to the motorist by the insurer as soon as the policy is approved, enabling the driver to print out a copy without having to wait for paperwork to arrive in the post. The car insurance provider points out that drivers can now insure and tax their cars online in a matter of minutes.

Tina Shortle, marketing director for swiftcover.com, says: “We are delighted to see that e-certificates for motor insurance have finally been approved by the Department for Transport as this has been something that swiftcover.com has been pushing for since we began in business.

“Our service is based on making car insurance quicker, simpler and more efficient to organise, which not only saves drivers time, by getting rid of things like call-centres; it also helps save costs.”

The British Insurance Brokers’ Association (BIBA), who, along with a number of major insurers, took part in the discussions with the Department for Transport, adds that the move is environmentally friendly, saving 2,280 tonnes of carbon dioxide and up to 9,750 trees annually that would normally be used to create paper insurance certificates.

However, when it comes to some of the most basic requirements of driving abroad, there seems to be a lot of confusion among motorists with a third (33%) admitting they don’t know whether a GB sticker is needed and a further 24% wrongly stating that it isn’t. Nearly half (49%) were unsure whether their car insurance covered them for driving abroad with 23% making the potentially disastrous assumption that it does.

There were several other worrying findings: 40% believe it is legal to jump a red light in Italy providing nothing is coming; 37% believe it is legal to overtake on either side of the motorway in Portugal; and 35% believe that it is permissible to use a mobile phone while driving in Holland.

Craig Staniland, AXA Insurance director for motor says: “While some of the misconceptions we have about driving abroad are amusing, there are some very serious misunderstandings that could lead to breaking the law or a serious accident.

“Both Eurotunnel and the ferry operators have seen a significant increase in bookings over the last few weeks and we would advise any Brits taking their car abroad to spend some time making sure they understand any local regulations and checking they have adequate insurance in place should the worst happen.”

Will Thomas, head of motor at www.confused.com says: “Our price index has revealed that there was a 6.6% hike in prices for drivers [aged] 17-20 this quarter and unfortunately this trend looks set to continue.”

To reduce costs, the company is advising young drivers to start with small-engine cars while they gain experience. The Ford Ka, it claims, returns the lowest premium on average. Often drivers of low-value cars are able to take out third-party fire and theft policies as high young driver excesses tend to make comprehensive cover a pointless exercise.

Typically, premiums dip in price when drivers hit 25 but Confused.com points out that building a no-claims bonus prior to this can lead to valuable discounts. Finally, it says taking the Pass Plus course is a good indicator to insurance providers that the driver is taking driving seriously.

The comparison site claims 6% of all 17 to 25-year-old males and 4% of females take the course. On average, young men will save £1037.75 before they reach 25, while young women will save £390 on average.

“The good news is there is light at the end at the tunnel and there are some easy steps that new drivers can take to drive down the costs, the easiest being shopping around for cover online,” says Mr Thomas.

“It only takes a few minutes and can save a substantial amount. All insurance providers rate young drivers differently and it’s only by comparing them all sideby side that you can get a true picture of the best deal.”

The study found that 61% would front again in the future and that 57% know that fronting is illegal. Many believe they can save more than £180 by fronting.

Added to this, 23% of young drivers questioned on a road safety awareness website set up by road safety charity Brake and The Co-operative Insurance’s admitted to driving without any insurance at all.

Tim Franklin, chief operating officer, at The Co-operative Financial Services, said: “The view that motor insurance fronting is harmless and doesn’t hurt anyone could not be further from the truth. Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future.”

He added: “We recognise that the current economic situation may be acting as a catalyst for motor insurance fronting and we are continuing our work to ensure younger drivers have access to competitive and fairly priced motor insurance.

“Through our partnership with the Road Safety Charity, Brake, we continue to educate young drivers about the importance of responsible driving through our interactive 2Young2Die website and resource materials.

“We also provide flexible insurance for young drivers where their premiums can be calculated based upon where, when and how they drive, whilst we also continue to accept the Pass Plus driver training qualification as a means of providing further insurance discount.”

The research, commissioned by Swinton, revealed that the average learner driver needed 45 hours of lessons as well as 22 hours of private driving practice. With current figures revealing that over 900,000 people apply for a provisional licence each year, the total annual cost of learning to drive is setting UK motorists back a staggering $1.1 billion each year.

Since the compulsory driving test was launched, new methods of examination have been brought in to ensure stronger road safety standards. The pass rate in 1935 was 63% but this has now fallen to 43%.

Steve Chelton, insurer development manager for Swinton car insurance, said: “Since the driving test was introduced 75 years ago, the cost has increased by over 250%, from 37.5p to over £90.

“Despite the high costs associated with learning to drive it’s still really important for new drivers as they represent a higher than normal percentage of road traffic accidents.
He added: “Since the compulsory driving test was introduced in 1935 the number of people killed on the roads has more than halved and the numbers continue to fall.

“New drivers are much more likely to have an accident in their first year of qualified driving; therefore, the driving test is paramount for improving road safety and also for reducing the cost of car insurance.”

Simon Lamble, product director at Confused.com, says: “Cost-cutting consumers may choose to decrease their level of cover in order to keep their overall premiums the same, rather than absorb the increase in IPT. This would effectively mean a large volume of consumers with insurance will be underinsured, and extra revenues collected through increasing IPT may well be swallowed up in other areas as the government picks up the costs of this deficit.

“It’s particularly depressing for car owners where insurance is a compulsory purchase. The Confused/EMB Car Insurance Price Index showed that in 2010, there has been, on average, a 14% year-on-year increase in price and we expect this trend to continue. Any increase in IPT will exacerbate this effect further, putting people off buying insurance which is bad news.”

He continues: “With insurance costs already rising and household budgets being squeezed, consumers are likely to be even more blasé about the need for insurance, putting themselves at risk. People will be more prepared to ‘gamble’ with non-compulsory insurances, which is a real concern.

“If the rises go ahead, the government will in effect be penalising those that do protect themselves by buying insurance, creating an even larger incentive not to bother. What we’d like to see is encouragement for more consumers to protect themselves, not changes which may prove detrimental to the industry.”

Research recently carried out by Direct Line and road safety charity Brake revealed drivers are also overwhelmingly in favour of a lower drink-drive limit, with 71% agreeing that the limit should be cut. Research indicates that a driver with this much alcohol in their blood is five times more likely to crash than if they were driving without any alcohol in their system.

More than half of drivers (55%) support Direct Line and Brake’s calls for a limit of 20mg alcohol per 100ml blood or lower, while a further 16% favour a limit of 50mg; the maximum limit recommended by the European Commission.

Andy Goldby, director of motor underwriting at Direct Line Insurance, said: “Drink driving is one of the most serious crimes a driver can commit and one that needs to be tackled with real conviction. If we are to make any headway into achieving our goal of the safest roads in the world, we need to ensure that the right laws, limits and learning are in place here in the UK.

“Unfortunately, drink driving is only one of the social problems that we need to address to make our roads safer. However, as our research suggests, any increase in penalties or decrease in the alcohol limit has the overwhelming support of British road users.”

The warning comes amid speculation that the coalition government might double IPT, which is applied to car, home and all other insurance products sold in the UK from its current 5% to 10%.
Edmund King, president of the AA, said that while recognising that there is a “gigantic hole” in public finances, taking the easy option of increasing IPT would disadvantage many vulnerable in the UK.

Mr King said: “Car insurance premiums are under severe pressure as insurers struggle to recoup losses brought about by increasing fraud, personal injury claims and poor investment income.

“Last year, the average quoted ‘Shoparound premium’ for a comprehensive car insurance policy rose by 22.6%, according to the AA’s benchmark British Insurance Premium Index. We expect a similar increase this year.”

He believes the 5% increase could see more than 50% added to the average family’s car insurance bill in just two years.

“Young drivers already pay by far the highest car insurance premiums and it is now almost impossible for a 21-year-old man buying his first car to obtain insurance for under £1,000,” he said. “In addition, those on low incomes often live in high crime areas and keep their cars on the street or in public parking areas, both of which lead to higher-than-average insurance premiums.

“My fear is that increasing IPT will be the last straw for many people and that they will just not bother with insurance at all, which in turn, will put yet further pressure on the premiums paid by honest motorists. It can also lead to more hit-and-run casualties as the uninsured don’t want to wait around to face the music.”

Steve Sweeney, head of car insurance at moneysupermarket.com, said: “VAT [value added tax] and CGT [capital gains tax] might be the ‘watch words’ today for most Brits, but Osborne’s emergency budget has dealt a stealth blow to all motorists and homeowners. By increasing IPT by 20% from January 4, 2011, (from 5% to 6%) the government has delivered a most unwelcome hike for cash-strapped Brits.

“This measure could see more uninsured drivers on the road. Our research has already found a fifth of motorists (20%) admit breaking the law by driving uninsured, and while motorists are already suffering from premiums rising way beyond the rate of inflation, this tax rise will be very painful especially for those paying high premiums.”

The worse affected will be those who are already in the highest car insurance price brackets, for example young male drivers. According to moneysupermarket.com’s research, a young male driver without a no-claims bonus could see his premium increase by more than £133 per year, while a 40-year-old male with a five-year no claims bonus is likely to pay just £21 more.

The magazine’s ‘Driver Power’ survey canvassed the opinions of more than 23,000 readers taking into account 45 insurance companies. The survey asked readers to rate car insurance providers on communication, helpfulness, value for money and overall service and NFU Mutual received top marks in all four categories. When asked whether they would buy another policy from their existing insurance provider, 96% of NFU Mutual’s customers said they would.

David Johns, editor in chief of Auto Express, said: “Every year, our readers avidly complete our survey, passing their verdict on the UK’s top car insurers. They’re certainly a tough bunch to impress, demanding great value and quality as well as excellent customer service. Once again NFU Mutual has managed to excel in every area.”

Paul Richardson, car insurance specialist at NFU Mutual, said: “The Auto Express ‘Driver Power’ survey is a benchmark for the car insurance industry, so we’re always keen to see what British motorists think of us.

“Winning for the fifth year running reinforces our aim to provide our customers with the extent of cover they need, at a fair price and with first class service. That’s what makes NFU Mutual so special.”

In March the company revealed that it achieved record turnover of over £1 billion in 2009 and has now announced its customer base has exceeded the two million mark.

Furthermore, despite the fact that unemployment figures are currently at their highest since 1994, Admiral has already recruited 490 workers this year and plans to take on a further 261 by the end of June. The extra 751 staff will boost its employment tally by 11% during the first half of the year alone.

The Admiral Group comprises a number of well-known insurance brands including elephant.co.uk, Diamond and Confused.com as well as the Admiral brand. It is Wales’ only FTSE100 company with offices in Cardiff, Swansea and Newport.

Admiral people services manager, Ceri Assiratti, said: “Wales has been hit particularly badly in this recession and unemployment in the principality stands at 9%; a 15-year high. So we’re delighted to be bucking the trend and are able to take on so many new members of staff in a difficult time.

“We are lucky to be in the business we are; car insurance is a compulsory purchase so is not badly affected by recession.”

It claims motorists could save £224.02 on their annual insurance premium by comparing deals on its website, an increase of 15% on the savings customers were making in January.

The data, which was compiled for moneysupermarket.com by Consumer Intelligence and is based on 2,000 quotes, also shows that 98.7% of consumers could save on their car insurance by using the comparison site.

Steve Sweeney, head of car insurance at moneysupermarket.com said: “With car insurance premiums rising it is more important than ever for people to shop around and get the best value for their money. The good news is that the savings that customers can make by shopping around are also increasing and now stand at £224.

“Recent updates to our site mean we display all the important information about car insurance policies as clearly and as accurately as possible so consumers are able to make a fully informed decision; the customer knows exactly what they are signing up for, and only has to ever enter their details once.

“Customers can rest assured car insurance policies bought from moneysupermarket.com are exactly the same as those available directly from providers listed on the site and that it isn’t cheaper buying a policy direct.”

According to the company, its comparison tool now compares 114 car insurance premiums in less than three minutes.