A driver was quoted £31.36 less when using a Gmail account than when using a Hotmail account

One of Britain’s biggest car insurers has admitted increasing premiums for drivers who apply using a Hotmail account.

Motorists seeking cover from Admiral could be charged £31 extra if they use certain email addresses. The insurer said some domain names were “associated with more accidents” than others, raising applicants’ risk profile.

Figures from the Association of British Insurers to be published today show that the cost of car insurance has increased by more than a quarter over the past three years.

Admiral said that hundreds of factors were used by underwriters in setting car insurance, with riskier motorists paying more. Issues included the age of a driver and their postcode.

Drivers living in some parts of London, the most expensive city, can pay almost four