Motorists in Northern Ireland have been warned to expect car insurance premiums to significantly rise in coming months.

The warning from the Automobile Association added that drivers could face a hike of 10-12 per cent on average comprehensive premium in the next 12 months, although they have had to put up with the highest car insurance cost in the UK.

A double-digit premium increase could mean drivers paying an extra of £50 on a policy this year, while some pay even more.

A report said that with recession biting harder the hike is bound to draw anger and frustration from motorists.

However, the consumer council has already examined the high premiums paid by motorists and found that car insurance is collectively costing drivers in Northern Ireland £136 million a year more than if they were in other parts of the country.

The watchdog further claimed that insurers could charge about £300 extra for an annual insurance policy.