The rise in car insurance premiums is likely to continue because of the growing claims costs, according to AA’s benchmark, British Insurance Premium index.

It has emerged that insurers are concerned about personal injury claims which rose to 22% last year.

Simon Douglas, Director of AA Insurance, said: “The car insurance industry continues to make an underwriting loss: for every £100 taken in premiums, more than £105 is paid in claims.”

The revelation comes at a time when British drivers are already hit by higher road tax bills and facing an increase in petrol prices in addition to the rising cost of car insurance.

Records from British Insurance Premium index show that the average premium quoted for an annual comprehensive policy has increased by £22 over the last three months. Records also suggest that there was a similar increase over the previous quarter.

A recent study by Sainsbury's Bank shows that the total cost of running a car has gone up by 13.55% over the last 12 months, this includes fuel, tax, car insurance, servicing and MOT tests.

However, motorists have been urged to take advantage of some good value deals available on the market by shopping around to ensure that they find the most competitive deals.