Using a mobile phone while driving is one route to higher car insurance premium, a new report warns.

A report from the AA shows that the £60 fixed penalty charge for mobile use is not the only added cost demanded from drivers who chat or text while on the road, with a collective £5.4 million each year being paid for cover.

Some car insurance providers could be increasing costs from 4.2 per cent to 18.1 per cent, the poll of eight companies discovered.

In real terms, this means that a single mobile phone use offence can hike premiums by almost £40 a year.

Simon Douglas, director of AA Insurance, said that driving while using a mobile phone increases the risk of accidents, slowing reaction time and control of the vehicle.

"In the event of an accident, police now routinely check mobile phone records to find out whether use of a phone was a contributory cause," he added.

A Halifax report published in February suggested that people aged between 20 and 29 years old are more likely to request debt consolidation loans than drivers in other age groups.
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