The average cost of a car insurance premium has risen by 7.8% in the first five months of 2022, to £786, according to the analysis.
Consumer Intelligence, which published the research, said signs of inflation were starting to show, with upward pressure on insurance prices coming from claims and repair costs.
Mike Miskelly, chief information officer at Consumer Intelligence, said: “It was only a matter of time before we saw this play out at the market level.”
New rules came into force at the start of the year, which means the premiums charged to people renewing their car or home insurance cannot be higher than the price a new customer would be charged for the equivalent policy.
This was to eliminate “price walking”, whereby existing customers might end up paying more to stay with the same supplier year after year.
Consumer Intelligence said premiums are still below the price peak seen in September 2017.
He added that average premiums for older drivers – those over 50 – have risen by 9.4% over the past year, taking their average annual premium to £414.
For motorists aged 25-49, prices rose by 6.4% over the same 12-month period, bringing the annual cost of car insurance to £592.
Meanwhile, drivers under 25 – who Consumer Intelligence says may be more likely to have an accident – typically pay £1,669 for car insurance, a drop of 3.2% over the past last 12 months.
Consumer Intelligence said there had been an influx of “essential” products, which are “stripped down” versions of existing products and compete for top spots on price comparison sites.
He also said Scottish drivers saw the biggest typical increases in their car insurance in the 12 months to May, with notable increases also seen in the South West of England and Wales.
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The smallest annual increase has been recorded in London, although motorists in the capital continue to pay the most for car insurance at £1,296 for an average annual policy.
Regionally, the South West of England is the cheapest place to live when buying car insurance, with the average cost of cover being £482, Consumer Intelligence said.
The premiums were calculated by comparing the prices offered to thousands of people by the main price comparison sites and a selection of direct insurers. The averages of the top five prizes for each person were taken.
A spokesperson for the Association of British Insurers (ABI), which has its own tracker based on prices paid for insurance rather than prices quoted, said: ‘The most recent data from the ABI shows that the average car insurance premium is £416, which fell 5% in the first quarter of the year and is at its lowest level since 2015.
“Insurers are aware of the growing pressures on household budgets and, although they themselves face rising costs like many other sectors, are committed to keeping prices competitive to provide affordable insurance to the most as many people as possible.”
Here are the annual increases in the cost of car insurance in the 12 months to May 2022, followed by the average price, according to Consumer Intelligence:
– Scotland, 8.4%, £580
– South West, 7.8%, £482
– Wales, 7.3%, £611
– South East, 6.7%, £783
– East Midlands, 6.5%, £559
– East of England, 6.4 per cent, £658
– Yorkshire and Humber, 4.4%, £811
– North West, 3.3%, £858
– West Midlands, 3.2 per cent, £892
– North East, 3.1%, £736
– London, 1.9%, £1,296