The latest AA British Insurance Premium Index found that, in the quarter ending June 30th, premiums on comprehensive car insurance policies went up by 11.5 per cent, the biggest hike in 16 years.
Meanwhile, the average costs of premiums for third party, fire and theft cover, popular among young motorists in particular, rose by 15.9 per cent.
Edmund King, AA president, explained how premium costs were going up as insurance companies struggled to meet claims.
"It's now much easier to get an insurance quote online, for example, comparison sites can enable dishonest individuals to manipulate information to get a lower premium.
"Insurers are increasingly charging higher prices to these people to cover the increased fraud risk."
In addition to fraud, another factor that has led to increases in premium costs recently has been the rise in personal injury claims.
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