Increased premiums are being driven by the over-25 and over-50 age cohorts. In the past 12 months, both demographics recorded price rises of 3% and 3.6%, respectively.

Today, drivers aged 25-50 pay on average £699 for their car insurance, with the over-50s forking out £407 annually.

Around the country, the biggest increases are in the West Midlands, London and Scotland.

Motorists in Scotland have seen a 3.3% price change over the last 12 months. Similarly, the Price index for the last three months in Scotland is at 0.0%, with the average premium in August 2019 at £602.

Premiums in London at £1,171 are the highest in the country followed by £903 in the West Midlands.

However, these increases are not across the board. Motorists under-25 witnessed premium falls of 3.2% over the same 12-month period.

However, an average premium for this group works out at £1,673 – still considerably more than any of the other age demographics.

John Blevins, pricing expert at Consumer Intelligence, said: “Pricing at an overall level will be driven by claims experience and the impact of the Ogden discount rate. Many insurers feel misled by the government and had planned for a more favourable discount rate being set. As such, premiums are being adjusted to compensate for the cash injections on to claims reserves made by many insurers.”

Used as the basis for calculating personal injury claims, the Ogden rate was adjusted from -0.75% to -0.25% in August. At first glance, the change appears modest but any movement of the Ogden rate is significant.

To compound the issue, many insurers had already priced in a 0%-1% move. The new -0.25% rate equates to higher-than-anticipated compensation payouts for accident victims.

Some insurers, though, have actually benefited from the Ogden change – as they’ve based their pricing on the old -0.75% rate. It means they could be in a position to offer premium reductions going forward.

Average overall premiums have increased by 22.6% since October 2013, when Consumer Intelligence first started collecting data. This is still 10.1% off the peak pricing of September 2017, but prices are once more on an upward trajectory.