car insurance premiums could rise by nearly a third this year, according to a survey. The research, by insurance brokers Footman James and Company, predicts that most motor insurance policies will rise by at least 10-15 per cent over the year. But the report warns that some insurers will be looking to hike up their premiums by as much as 30 per cent.

Peter James, managing director of Footman James, said: "Rates for motor insurance are now hardening and insurers are looking to increase annual premiums by as much as 30 per cent over the next 12 months."

Guardian Insurance confirmed that premiums were set to rise this year. David Ross, a spokesman for the company, said that on average customers could expect to see a ten per cent rise in prices.

But Footman James urged customers to shop around for a good deal if their insurer ups prices.

Direct Line, which deals directly with customers, said that it would not be raising prices by this amount.

Customers can cut the cost of their car insurance by reducing the number of drivers covered, fitting security devices and selecting a "limited mileage" option on their insurance policy.

Story date: Tuesday 26 January

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.