Well, it's bad news for drivers. The AA has released its index of British insurance premiums, which shows that comprehensive car insurance premiums are rising at an average of 1% every month.
It's measured premiums between April and July, and found there has been the steepest increase since the year 2000. If you're hoping to reduce what you pay by switching to third party, fire and theft then there's no good news there either - the cost of these policies is rising even faster.
Simon Douglas, director of AA Insurance, says it's because insurers are being hit with rising costs and are likely to make losses of more than £240million this year alone.
"Although the number of accidents on Britain's roads is thankfully falling, the cost of claims continues to rise - particularly personal injury claims and legal expenses," he explains.
It's not just compensation claims that are driving up costs. The AA warns that fraud has had a huge impact on prices, as have growing numbers of uninsured drivers. Honest motorists can expect to pay an extra £30 each on their policies to meet the cost of people driving without any cover at all.
One problem that's really starting to kick in is that many providers don't want to insure young and inexperienced drivers.
People under the age of 21 make ten times as many car insurance claims as 35 year olds. The AA warns that only half of insurers will even quote for anyone aged 20 or below.
And the problems aren't likely to go away. Douglas adds: "I don't see the pressure on premiums easing. Over the past three months more than 90% of quotes in the AA Index added £5 or more to their premiums and only 2% fell."
So, what can drivers do to reduce their premiums, or at least to make sure they have all the cover they need at the lowest possible cost?
Keep it safe
Insurers look at the risk every driver presents, so you'll get a better deal if you can reduce that risk. By keeping the car off the road at night in a garage or on a drive you make it safer, meaning your premiums will come down.
Pick a smaller engine
If you're struggling to pay your insurance then give some thought to the car you're driving. The bigger and faster the vehicle, the more it will cost to insure.
Shop around
This is one of the easiest ways to save money. Don't assume that your current provider is giving you the best renewal quote but look at other insurers using our car insurance comparison tool and see if you can save.
Pass Plus
If you're a new driver then you're going to be the worst hit by rising prices. Take the time to sit your Pass Plus and insurers will see that you're safer, helping you reduce your premiums by as much as 36%.
Up the excess
Agreeing to pay a higher excess, such as £500 instead of £100, can reduce your premiums. Don't forget that this is what you will need to pay in the event of a claim, so be sure you can afford it.
Reduce your mileage
When applying for insurance, you estimate the number of miles you'll do each year. If you aren't travelling much then you'll usually pay less. That means that if you car share with a colleague or decide to take the train a couple of times a week, you can bring down the price.
Add an older driver
If you have a partner or parent who is more experienced behind the wheel, adding them to the policy can sometimes reduce what you pay. Whatever you do, don't make them the named driver, though. This is called fronting and could invalidate your insurance.
Ensure it's adequate
As you look for the lowest price, don't be tempted to scrap things you really need. It might cost more to have a courtesy car or legal fees paid, but if you need it then include it. Skipping extras that you can't do without will be a false economy if you do need to claim.
Don't commit fraud
When you're trying to reduce what you pay, it can be very tempting to avoid telling the whole truth, but this is a dangerous tactic.
By misleading your provider, you are committing insurance fraud. That means your cover isn't valid and if you caused an accident you could be responsible for all the costs yourself.
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