Data from Consumer Intelligence reveals average premiums have risen 14.6% in the past year, five times the rate of inflation which stood at 2.9% in both August and May.

Since October 2013, average motor insurance premiums have increased by 32.2%.

It said the government proposals to increase the discount rate – which sets out personal injury claim pay out ratios – have stabilised prices, but the insurance premium tax rises, along with the weakness of sterling and rising claim costs have pushed prices higher.

Younger drivers aged 25 and under saw premiums rise 11% as the use of telematics, or black box technology, kept prices in check. The research showed that 65% of the most competitive prices for under 25s come from telematics policies. That said, this group pays a hefty average cost – £1,719 – to get on the road, slightly lower than prices recorded in 2013.

Older drivers are bearing the brunt of the rises as the average premiums for over 50s rose 16.5% in the year to September. However, this age group still see the lowest bills at £434.

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Telematics even helps older drivers with 11% of the best deals for those aged 25-49 available from telematics, and 7% for those over 50.

Geographically, drivers in London and the North West of England face the highest annual bills at more than £1,000 a year – nearly double the £518 average in Scotland.

The table below shows the average premiums and increases over the past year across the country:

John Blevins, Consumer Intelligence pricing expert, said: “Prices are stabilising but the future is unclear with the new Ogden rate, whiplash reforms and the possibility of another insurance premium tax rise in the Budget.

“Car insurance claim costs have increased in the past three months, partly because we are driving more technologically advanced cars which cost more to repair, but also because the weakness of the pound means the cost of parts is rising.

“Older drivers are being hit with higher premiums because they are driving for longer and consequently becoming involved in more accidents.”