The average car insurance premium has increased by over £90 in the last year, with the average policy rising by over 15 per cent. New figures have revealed that motorists in the North East have been hit hardest – find out the increase in your region below.
Drivers in the North East have been stung by an 18.9 per cent increase in their car insurance premiums, analysis by Consumer Intelligence has revealed.
East Midlands saw the second largest increase at 17.6 per cent, while Londoners saw an increase of 16.7 per cent to their premiums in the last year.
Why have car insurance premiums increased?
Changes to the Ogden Rate – the calculation used for personal injury pay-outs – added a staggering £3billion to car insurers’ costs, which have subsequently been passed onto motorists.
An increase in Insurance Premium Tax over the last two years – rising from six per cent to 12.5 per cent – has also contributed to rising premiums.
Average car insurance premiums per region and percentage increases in the last year
|Region||Average premium||Price rise this year|
|Yorkshire & The Humber||£658||15.70%|
Unsurprisingly, drivers aged between 21 and 24 are paying the highest average prices at £1,202, but have seen slightly lower increases at 13.1 per cent.
With a 17.9 per cent rise, over 50s have been victim to the biggest increase, but pay an average premium of £418.
How can I save money on my car insurance?
Renewing or buying car insurance for the first time can be daunting and trying to find the best possible price can be a demanding task.
We’ve compiled our ten top tips to help you find the best yearly insurance premiums.