Comprehensive car insurance premiums in Britain rose 13.2 percent in 2015, the biggest annual rise since 2011, according to Confused.com's car price insurance index.
The increase, following a jump of 6.9 percent in the fourth quarter, pushed the average premium for an annual comprehensive car insurance policy to 672 pounds ($970), data from the price comparison website Confused.com and consultants Willis Towers Watson Plc showed.
"The recent increase to Insurance Premium Tax along with inflationary pressures on claims costs, especially to vehicle damage repair costs, have been the major factors driving up prices.", UK Head of P&C Pricing at Willis Towers Watson, Stephen Jones said.
The cost of third-party fire and theft policy (TPFT) policies rose at a similar rate, up 6.9 percent in the quarter and 16.8 percent annually, the company said.
"We've now seen 11 consecutive months with no premium decreases, which would suggest that the trend is likely to continue", Head of Data Services at Confused.com, Steve Fletcher said.
In November, the government raised Insurance Premium Tax rise to 9.5 percent from 6 percent.
In 2011, the average comprehensive cover premium reached a high of 858 pounds per year.
($1 = 0.6925 pounds)
(Reporting by Sangameswaran S in Bengaluru; Editing by Elaine Hardcastle)