(Bloomberg) -- U.K. drivers may have to pay more than 1,000pounds ($1,200) annually for car insurance next year, a 28 percentincrease, after the government cut a key rate to calculate claimspayments.

The average U.K. car insurance premium rose 1.8 percent inthe first quarter to 781 pounds, according to data compiled byConfused.com and Willis TowersWatson. The cost “could be on course to drive past the858-pound peak we saw in 2011,” Steve Fletcher, head of dataservices at Confused.com, a unit of U.K. car insurer AdmiralGroup Plc, said in a statement.

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