The AA’s table of cheapest deals on the market showed the cost of annual comprehensive car insurance rose by 5.2% in the three months to the end of June.
Young drivers are facing the biggest increase with those aged 23 to 29 seeing a 6.2% rise over the same period, the biggest increase of any age group.
A driver in this age group will typically pay a premium of £683.
AA Insurance managing director Janet Connor said: “Insurers have been releasing their reserves to maintain their competitive edge to the point where this is no longer sustainable – and we are seeing premiums beginning to rise once more.
“The days of cheap car insurance premiums are over – price rises are inevitable.”
The BBC reports that a quote for a typical comprehensive motor insurance policy for all age groups has risen to £549.
The AA estimates that the rise in insurance premium tax, announced by Chancellor George Osborne in the Budget, will add £18 to the cost of the average comprehensive car insurance policy.
A 1.3% rise in the index of cheapest home and contents insurance premiums, the first increase since 2012, was also reported by the insurer.
The average premium for a contents policy has hit £61.18 with the typical buildings premium up to £108.15.
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