UK motor premiums rose 12.7 pct in 2009 - survey

* Rate of increase accelerated in H2

* Prices up 6.3 percent in Q4

* Average policy 509 stg end-2009, vs 450 stg end-2008

LONDON, Feb 15 (Reuters) - The cost of car insurance jumped 12.7 percent in Britain last year as providers responded to rising claims, a survey showed, suggesting a long-awaited upturn in the motor insurance market may be under way.

The average quoted premium was 507 pounds ($795) at the end of 2009 compared with 450 pounds a year earlier, according to the survey by Confused.com, Britain's biggest insurance comparison website, and consultants EMB.

The pace of the increase accelerated in the second half of the year, with prices rising by 6.3 percent in the final quarter alone, EMB and Confused.com said.

British car insurance prices have been held in check by stiff competition between providers, fuelled in part by the spread of price comparison websites, despite rising claims levels and dwindling investment income as financial markets falter.

EMB and Confused.com, part of motor insurer Admiral (ADML.L), said the industry paid out 20 percent more in claims than it received in premiums last year, and predicted further price increases as companies try to return to underwriting profitability.

"Insurance providers have been badly impacted by rising numbers of injury claims, and with no sign of a reversal in this trend and negligible investment income available to them, further price rises can be expected," said EMB partner Karl Murphy.

British insurance entrepreneur Peter Wood predicted "significant increases" in motor rates last week as he led a management buyout of Esure, the online motor and home insurer he founded ten years ago. [ID:nLDE61A1DH] (Reporting by Myles Neligan) ($1 = 0.6381 pound)