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It’s near impossible to watch TV these days without an advert for some car insurance comparison site telling you if you use its service you’ll save hundreds of pounds, but according to new figures, savings will soon be short-lived.

Admiral Insurance – one of the big players – have announced that it has put up insurance premiums by 12% in 2010 and will do the same in 2011. And using that figure with the average cost of insurance will see the ordinary Joe soaps paying £100 more.

The reason for the price hike is due to the increase in personal injury claims but more specifically the new ‘no win, no fee’ compensation lawyers. The drivers affected the most will be young male drivers who have recently passed there driving test, with one years insurance estimated to be £300.

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