BRADFORD has been revealed as the most expensive postcode in Yorkshire and The Humber to insure a car, with drivers paying a whopping £1,113 on average.

The data comes from Confused.com’s latest car insurance price index, produced by Willis Towers Watson.

Based on more than six million quotes every quarter, it is the most comprehensive car insurance price index in the UK.

The figures reveal that for drivers in Leeds and Sheffield, the average cost of car insurance has increased by £35 (4%) compared to 12 months ago while drivers in Halifax have been hit hardest with car insurance in their area climbing by £61 (7%).

These increases are mirrored across the UK, with figures revealing the average price of car insurance is now at £783, following a £23 (3%) increase over the past year.

Councillor David Ward (Lib Dem, Bolton and Undercliffe), who campaigned on the issue when he was Bradford East MP, said he was not surprised insurance was more expensive in Bradford.

He said an upward spiral in cost was caused by accidents, cases of falsifying postcodes and illegal driving which put premiums up.

He said: "We were having some success but a dozen things need to be put right.

"People who are responsible for false claims and cash for crash continually look at the system to defraud it. They will find something else.

"It needed to have all the different people working together.

"It isn't something you can introduce one thing for, it needs to be looked at all the time."

The data is released following an interim report by the Financial Conduct Authority (FCA), which exposed ‘dual pricing’ practices which inflate premiums for loyal customers who renew year-after-year, many of whom are vulnerable.

According to the FCA’s report, insurers are offering cheaper prices to new customers in order to win their business at the expense of bumping up prices for loyal customers. But if insurers are forced to balance out the way they price customers, this could see prices for new customers increase even further. This is why Confused.com is urging drivers to shop around to find the cheapest price.

Evidence of this behaviour was found in further research by Confused.com, which reveals 43% of UK drivers who received their renewal in the past quarter (July – September), were being charged £53 more, on average. Although, worryingly, 38% went on to renew with the same insurer, despite the price increase. Most (94%) made the decision not to switch on the basis that the price increase wasn’t significant.

The research also showed that people stay loyal with the hope that they will be rewarded. However, this is clearly not the case. According to the research, drivers stay with their insurer for three years, on average. In fact, nearly one in 10 (7%) admit they stay with their insurer for more than 10 years. But it also highlighted that switching can save, with those shopping with a price comparison website saving £61, on average.

But the FCA has raised concerns that consumers who choose to automatically renew with their current provider are paying higher prices for their insurance than they would if they shopped around. And insurers are targeting these customers who are less likely to shop around with higher prices. As a result, the FCA highlighted the need to shop around, stating “many consumers who switch or negotiate their premium can get a good deal”. And this applies even if the increase is only minimal.

Female drivers are bearing the brunt of the increases having seen a £29 (4%) spike in prices compared to 12 months ago. The average female driver can now expect to pay £737 for their car insurance, on average. However, this is still significantly cheaper than male drivers, who pay £821 in comparison, following a £19 (2%) increase in prices year-on-year, on average. This brings the gap between the two to £84, on average. Although it isn’t just female drivers who are bearing the brunt of the increases. Younger drivers have also been hit hard by the increases. In particular, prices for drivers aged 23 are now £45 (4%) more expensive than 12 months ago. This means drivers of this age will now pay £1,306 for their car insurance, on average. Similarly, the average price for 19-year olds increased £42 (2%) in 12 months to £1,938. According to the data, this is one of the most expensive ages for car insurance, topped only by 18-year olds who pay £2,067, on average.

Amanda Stretton, motoring editor at Confused.com said: “For drivers, buying car insurance is a must. And given recent investigations into car insurance pricing, the situation could only get worse if new measures mean insurers ramp up the price for new customers.

“The FCA has found that loyal customers are being over-priced at renewal. But this really shouldn’t be the case. Customers should be rewarded for their loyalty.

“Until the FCA puts measures into place to protect consumers, we need to be doing all we can to make sure we’re not paying more than we should for car insurance.

"Always shop around, even if your renewal price is cheaper or the same. It’s likely there will be another insurer who wants your business."