LONDON (Bloomberg) — UK car insurance premiums rose at the fastest rate on record in the last quarter of 2009 as insurers passed on the rising cost of personal injury claims to consumers, a study by the Automobile Association Ltd. said.

The average premium for third party, fire and theft cover rose by 8.9 percent to £1,252 ($2,028) in the three months to December 31, the most since records began in 1994, according to the roadside assistance company's British Insurance Premium Index published yesterday.

"Many insurers have been reporting significant rises in personal injury claims," said Simon Douglas, director of AA Insurance. "Many people seem willing to pursue claims for even minor injuries. This is encouraged by personal injury claims lawyers."

British car insurers including Aviva Plc and Royal Bank of Scotland Group Plc's Direct Line have blamed so-called "no-win no fee" personal injury lawyers for inflating claims costs, prompting them to increase premiums. Zurich Financial Services AG, the UK's third-biggest car insurer, this month said it plans to raise prices by as much as 20 percent in March, citing increased bodily injury payouts.

The average annual premium for comprehensive cover on price comparison websites such as Confused.com rose 13 percent to £674, Basingstoke, England-based AA said.