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One reason is fraud. It costs the insurance industry an estimated 1.6 billion every year, adding 40 to the average annual household premium.
The most common type of opportunistic insurance fraud is people exaggerating claims by adding extra items to a genuine household claim.
Further premium increases to home cover could be expected after recent storm damage from the heavy rain and winds in the UK.
Homeowners in badly hit pockets of Britain are forced out of their homes and into hotels for which insurance companies foot the bill while repairs are made.
Car insurance premiums rose last year - and experts predict they will continue to rise steeply.
From October to December last year they leapt by almost 1 per cent a month, according to research.
Motor insurance companies' costs kept rising as personal injury claims rose and insurance fraud went up 17 per cent.
Many scams are detected across the country with fraudsters setting up car accidents with large personal injury claims which follow.
There are lots of ways that you can help to keep the cost of insurance down.
When it comes to car insurance, keeping your car in the garage could chop money off the premium.
When taking out travel insurance, it's always a good idea to review the destination countries for which you are covered. And if you're not planning a long haul trip this year, for example, then you can remove those places from your list of destination countries and potentially reduce the cost of your premiums to boot.
For home insurance, remember claiming for minor items may not always be a good idea because you will have to pay an excess and your premiums may rise.
And make sure you're not paying for anything you don't need.
You could switch to another insurer. Most companies base premiums on a combination of factors, including value, postcode, type of property and your claims history.
But problems arise when people are seduced by really cheap cover - inadequate insurance could result in a bigger bill in the long run.
They are often cheaper for a reason. Many policies do not come with a claims handling service, which means that, should you be involved in an accident, the job of finding quotes and organising the repairs will be yours.
It can be well worth spending a few extra pounds a month to get the cover and service you need.
Written by Holly Thomas, an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.