THE average auto insurance premium has surged by lb90 during 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 – 5 times the rate of inflation.
Analysis by Consumer Intelligence revealed drivers within the North East have been clobbered by an 18.9 percent increase – the biggest of any region.
Yet Londoners continue to be make payment on most having a lb1,000 annually average insurance bill.
The national average is now lb666 and it has risen significantly in the last year thanks to rule changes and tax hikes.
Changes to the Ogden Rate – the calculation employed for injury payouts – added lb3billion to insurers' cost with these passed onto motorists.
Insurance Premium Tax has rocketed over the last 2 yrs – up from six percent to 12.5 per cent.
These changes have have meant since 2021, insurance premiums have risen with a THIRD.
Drivers aged between 21 and 24 pay the highest prices on average, at lb1,202, but have seen slightly lower annual premium increases at 13.1 percent.
Over 50s are experiencing the largest rises at 17.9 per cent but pay premiums of lb418 typically, the research found.
John Blevins, a pricing expert at Consumer Intelligence said prices could continue to go up, too, because the full effect of the most recent Insurance Premium Tax rise hadn't been fully felt.
He said: "There is some respite from intends to push ahead with whiplash reforms announced in the Queen's Speech."