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Fleets are being warned to expect further rises in insurance premiums after The AA's insurance cost index showed an increase in the second quarter of 2015.
Average premiums rose by more than 5% over the three months to the end of June compared with the previous quarter.
Janet Connor, managing director of AA Insurance, said the rise has been expected. "Thanks to bruising competitive pressure, premiums have been falling while claims costs have continued to rise, particularly for personal injury. Indeed, the number of injury claims reported has been increasing at around 10% per annum since 2013.
"So 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."
Connor said that while she expected premiums to continue to rise steadily over the rest of 2015, chancellor George Osborne's 58% increase in insurance premium tax (from 6% to 9.5%) is likely to mean a much sharper rise.
"This stealth tax grab will add around £18 to the cost of a typical comprehensive car insurance policy and it has come at a time when insurers have no capacity to absorb that cost and will have to pass it on," she said.
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