Car insurance prices have seen a "sharp increase" in the second quarter of the year, while home insurance costs have also risen, says the AA. But it adds that prices are likely to continue rising this year.
Car insurance costs fell in the first three months of the year, according to the AA, but it warns premiums could 'spiral' unless there is a crackdown on fraudulent claims.
Drivers are paying about 10% less for their car insurance compared with a year ago, according to the AA. However, it warns they are likely to rise this year.
The cost of taking out car insurance has risen for the first time in more than two years after efforts to clamp down on fraudulent claims failed to deliver the savings insurers had anticipated, according to the AA.
22 October 2014
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