Car insurance prices in Yorkshire and the Humber jump by almost 50%

The latest annual rise is lower than the 67.2 per cent recorded in the year to the end of November, it added.

However, it is still the third-highest annual increase recorded by Consumer Intelligence since it started tracking data in October 2012.

The three months to February saw quotes increase by 0.5 per cent, marking the lowest quarterly increase since November 2021. Some parts of the UK, including Wales, the North East and North West of England, and Yorkshire and the Humber, saw quoted premiums fall over the quarter.

Max Thompson, insurance insight manager at Consumer Intelligence said: “The new year saw some major brands make competitive movements and reduce premiums.

“However some of this was unwound in February indicating it may have been more of a tactical move than a long-term trend.”

The research looks at the average of the five cheapest premiums returned on price comparison websites.

Researchers said telematics providers accounted for 15 per cent of the top five quotes, down from 18 per cent in the three months to the end of November.

Telematics policies use technology to measure how a vehicle is being driven. The policies help insurers to offer premiums that are more tailored to the users of a vehicle.

Among the under-25s, the proportion of top five quotes from telematics providers dropped to 36 per cent, marking the lowest since May 2016, Consumer Intelligence said.

Jonathan Fong, manager of general insurance policy at the Association of British Insurers (ABI) said: “Insurers are aware of the financial challenges customers are facing and are determined to keep motor insurance as competitively priced as possible.

“Our motor premium tracker is the only collection based on the price customers pay for their policy, rather than quotes, and shows that the average motor premium increased by 25 per cent last year to £543.

“This was largely driven by above inflation increases in the cost of repairs, thefts and replacement cars, which contributed to insurers paying out a record £9.9 billion in claims for the same period – an average of £1.13 million per hour.

“As an industry, we’re committed to supporting customers and finding ways to help tackle the cost of providing motor insurance. Our 10-point roadmap to combat the rising costs encourages greater collaboration with government and relevant stakeholders.”

The ABI also said it had called for a cut to the insurance premium tax, a cost which is levied on insurers but is passed onto consumers through the cost of their policies.