Are YOU being ripped off with car insurance? Map reveals where motorists are hit hardest
Car insurance premiums have rocketed by £90 in 2017 as new rule changes and tax hikes are hitting motorists in the pocket
THE average car insurance premium has surged by £90 over the last year with motorists in the North East hit hardest, latest figures reveal.
In the last year, the average policy has risen by over 15 per cent - five times the rate of inflation.
Analysis by Consumer Intelligence revealed drivers in the North East have been clobbered by an 18.9 per cent increase - the largest of any region.
Yet Londoners are still paying the most with a £1,000 a year average insurance bill.
The national average is now £666 and has risen significantly over the past year thanks to rule changes and tax hikes.
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Changes to the Ogden Rate - the calculation used for personal injury payouts - added £3billion to insurers' cost with these passed onto motorists.
Insurance Premium Tax has rocketed over the last two years - up from six per cent to 12.5 per cent.
These changes have have meant since 2013, insurance premiums have risen by a THIRD.
How to avoid the increases and get the best deal
Here's how drivers can avoid shelling out a fortune:
- Don’t auto-renew as rolling over your policy with your insurer means you’ll pay more than you need to. Shop around for the best deal using a comparison website and challenge your existing provider to match the best deal you find.
- Add an extra driver to your policy. It is illegal to claim someone is a main driver when the’re not, but adding a secondary driver can save you money without breaking the law. Ideally the second driver would be someone with a clear driving licence and good no-claims history.
- Pay your premium in full if you can afford to stump up the cash outright. Insurers usually whack on a hefty interest charge for monthly repayments so you can make a significant saving by paying upfront.
- Consider fully comprehensive over third-party – full cover is often cheaper.
- Get a black box policy. These offer incentives and reduced premiums for young drivers who are careful on the road.
Drivers aged between 21 and 24 pay the highest prices on average, at £1,202, but have seen slightly lower annual premium increases at 13.1 per cent.
Over 50s are experiencing the biggest rises at 17.9 per cent but pay premiums of £418 typically, the research found.
John Blevins, a pricing expert at Consumer Intelligence said prices could continue to go up, too, as the full effect of the most recent Insurance Premium Tax rise hadn't been fully felt.
He said: "There is some relief from plans to push ahead with whiplash reforms announced in the Queen's Speech."