The cost of car insurance premiums is “steadily” increasing, according to new figures from the AA Index.

It shows that comprehensive cover rose by 2.4 per cent over the last quarter and third-party, fire and theft (TPFT) by 1.4 per cent.

An average annual comprehensive policy will now cost £629,04 and £628,60 for TPFT, the firm claims.

John Close, insurer relations director at the AA, stated that the rising figures are due to the ten per cent annual increase in personal injury claims and five per cent rise in accident damage repair costs.

He explained that the new technology used in cars such as crumple zones, secondary safety systems and lightweight materials, is expensive to repair.

“The irony of this is that you are much less likely to be killed in a serious accident - and are thus more likely to make a personal injury claim,” Mr Close said, explaining that this cost will impact upon car insurance premiums.

Norwich Union recently advised motorists to look online for the best cover quote.