UK motorists are paying 13.5% more in premiums than a year ago, recording an average of £788 ($1347) a year, according to the Consumer Intelligence market research agency.

Rising claims and an increase in the insurance premium tax from 6% to 9.5% last November are behind the spike.

“The rise… obviously isn’t great news for consumers looking for a cheap deal, but for the industry’s sustainability, signs of hardening rates will be encouraging,” the agency says.

Drivers in the under-25 age group bore the brunt of the premium rise, paying an average £1831 ($3129), compared with £348 ($594) for drivers aged 50 and older.

Scotland offers the most affordable premium in the country, with an average of £562 ($961), while drivers in northwest England pay the most at £1177 ($2012).

Londoners pay £1068 ($1826), the second-highest figure.