AA

Car insurance prices are likely to increase by a mammoth 15% by the end of 2015, the AA has said today.

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.

Petrol prices have reached a six-month high, causing many motorists to reduce their car use, according to the AA.

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.

The price of petrol at the pumps is slowly creeping up again, dashing motorists' hopes of an average price of £1/litre.

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.