The average quote for a private, comprehensive motor insurance rose by 7.9 per cent since May 2006 from £519 to £560. The intermediary market also saw premium rises with the average reaching £529, although it was still 0.6 per cent lower than the same time last year. Third party, fire and theft motor insurance premiums continued to emerge as significantly higher than comprehensive motor insurance premiums. This was mainly due to its association with younger drivers with low or no voluntary excess.

Managing director of Experian's insurance services David Murby said: “The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market. “Competition is aggressive and with technological advances and changing consumer needs the industry is unlikely to settle back into a straightforward situation.”