New research from the AA has revealed that car insurance premiums are being forced up by almost a third due to rising levels of fraud.

AA Insurance found that the average comprehensive insurance policy costs 30 per cent more this year than last, making it the biggest increase since the company's records began 16 years ago.

Those facing the steepest price rises were younger drivers, with their premiums rising by even more than 30 per cent – indeed, policies for those drivers aged under 30 have soared by 11.5 per cent in the last three months alone. However, younger drivers have also been found to be more likely to make a false insurance claim.

Five per cent of motorists under the age of 35 have staged an accident in order to make a fraudulent claim and 15 per cent have considered doing so, a separate survey for moneysupermarket.com found.

Simon Douglas, director of AA Insurance, said, “The evidence from moneysupermarket.com, suggesting that thousands of people are attempting 'cash for crash' scams themselves – perhaps to get someone else to pay for past damage or to make a claim for non-existent whiplash injury – is deeply worrying.

“Other types of fraud, such as fronting, where a named driver is in fact the main driver, withholding information and lying about where a car is kept or what the driver’s occupation is, are all also on the rise,” he added.

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