The average cost of home and motor insurance has risen by a combined £88 year-on-year as part of an almost £750 increase in annual household bills, new research has claimed.

Research from Comparethemarket found household bills have surged by up to £747 in the past 12 months, which has contributed to an increase in insurance costs.

The research analysed the cost of energy, water, home insurance, motor insurance, and council tax, which was 15% higher than the previous year altogether.

Households now typically need to pay a hefty £5,785 each year for their regular bills – an increase from £5,038 last year.

Car insurance has also seen a steep uplift, with the typical cost being £613 – an £81, or 15% rise year-on-year.

York Press: Car insurance has seen a big jump year-on-yearCar insurance has seen a big jump year-on-year (Image: PA)

What are the price comparisons to 2022?

When comparing the average costs from 2022 to 2023 Comparethemarket found:

Energy - £1,971 in 2022 to £2,500 in 2023 (up by £529)

Motor insurance - £532 in 2022 to £613 in 2023 (up by £81)

Water and Sewerage bill - £417 in 2022 to £448 in 2023 (up by £31)

Council Tax (Band D) - £1,966 in 2022 to £2,065 in 2023 (up by £99)

Home insurance - £152 in 2022 to £159 in 2023 (up by £7)

Total - £5,038 in 2022 to £5,785 in 2023 (up by £747)

Following the increase, household bills will now typically take up 18% of average weekly earnings before tax – up from 16% last year.

Hélène Barnes, cost of living expert at Comparethemarket, said: “Millions of households will be worried about shocking increases in recent bills, with many seeing the cost of their energy bills and car insurance increasing faster than inflation.

"This will put further pressure on households that are already struggling with the rising cost of food and housing. During this difficult time, people must take the time to look for savings, so they don’t pay more than they need to.

"Most households could save a significant amount of money by shopping around for cheaper deals on their bills, such as car and home insurance, broadband, and credit cards.

"Comparing prices online is one of the best ways to check you’re getting the savings you deserve.”