The ability to work out a good finance deal when buying a new car could become a vital asset in the near future. Car insurance prices have gone through the roof as a result of a rise in fraudulent car insurance claims.

According to the AA, in the three months to June 30th, the average cost of a comprehensive policy rose by a scary 11.5 per cent to £704 per year. It is the fastest rate of inflation for the AA in 16 years, and it shows the amount of extra money people have to pay just to insure their car.

AA president Edmund King stated: "Last year, the cost of meeting claims exceeded premium income by 22 per cent and the spiraling increases we're seeing show that insurers are trying to fill that chasm."