The cost of car insurance has gone up as claims have risen, but home insurance premiums are falling in a competitive market, according to AA Insurance.

The AA British Insurance Premium Index, which looks at the cost of insurance premiums each quarter, found the UK average premium for an annual comprehensive motor insurance policy rose 3.1 per cent or £22 over the past three months, a simliar rise to the previous quarter. Over the year, quoted premiums have risen by £50 or 7.6 per cent, to an average of £724.28.