The rate at which car insurance costs are rising is a cause for growing concern.

Over the past 12 months, the average cost of car insurance has risen far faster than the rate of inflation. January’s British Insurance Premium Index (BIPI) reveals that comprehensive cover now costs an average of £1,458, while the average cost of third party, fire and theft (TPFT) cover has risen to £1,572. BIPI data also reveals that shopping around for car insurance reaps the greatest rewards for drivers seeking comprehensive cover. Such drivers typically saved an average of £487, compared to an average saving of just £76 for their TPFT-seeking counterparts.

Surprisingly, young drivers are not the group to be affected most severely by recent car insurance hikes. Males aged 30-49 have been hit the hardest, with average increases of just over 19 per cent, equating to more than four times the rate of inflation. Young women have been least affected, with females aged 17-22 experiencing the lowest percentage rate rises.