North East drivers paid 13% more for their car insurance last year compared to 2021, industry figures have revealed.
The car insurance team at Comparethemarket analysed the year-on-year increase of insurance costs across the UK and revealed that North East motorists experienced a £67 average increase in premiums last year. The average cost for a car insurance premium in the region was £572 in November 2022, compared to £505 in November 2021.
Although this was £114 more than motorists in the South West, who had the cheapest premiums last year at £458, drivers in London fared the worst, with average premiums of £822 in 2022, which although were lower than £960 in 2021, were still £250 more than someone in the North East could expect to pay.
Read more: Car insurance: 10 ways you can be caught out without realising
The research showed that while insurance premiums have increased for all age groups, the 50 to 64 group - who typically experience the lowest premium - suffered the fastest rises, with sharp hikes also for the 65 to 80 age group and the 80+ age group. Motorists aged over 55 are more likely to stick with their existing insurers, despite facing above-average increases in premiums
Although drivers aged 50+ suiffered the highest prive jump, car insurance premiums are rising across all age grpups as insurers pass on the higher cost of claims to their customers. According to Comparethemarket, the cost of car insurance claims has increased due to an uplift in the value of second-hand cars and higher vehicle repair costs.
Another cause for the premiums rising is the Financial Conduct Authority's ban on 'price walking' -in January 2022, which is the insurer practice of charging renewing customers more than new ones. This led to falling premiums for renewing customers and higher premiums for new ones.
Julie Daniels, motor insurance expert at Comparethemarket, said: "Drivers will be concerned that the cost of car insurance is rising, especially when household finances are already being strained. Our research shows the average motor premium has increased by 14% year-on-year. However, the cost of car insurance is rising faster for drivers over 50. This could mean that these motorists end up paying much more than they need to for car insurance, as they are also less likely to switch insurers. Our figures show loyalty doesn't pay. By shopping around, drivers could save hundreds of pounds when their policy ends. We encourage everyone now, more than ever, to check if they could save by switching "
Although prices are on the rise, there are certain things you can do to keep your premium as low as possible:
1. Shop around
This is the best way to save on car insurance. Drivers can make savings of hundreds of pounds if they shop around when renewing their cover. You can make it easier by using a site such as Moneysupermarket, Comparethemaket or Confused.com. The new FCA rules means that insurers are no longer allowed to charge renewing customers more than new ones, but it may still be possible to get a better deal by shopping around.
2. Consider 'black box' telematics insurance
Black box policies are where the insurer uses a system in your car to monitor your driving, either a separate device or using the driver's smartphone. Designed to reward careful drivers, these policies can cut premiums substantially once you prove you are a good driver.
3. Cut back on named drivers
Keep costs down by ensuring that only regular drivers are named on the policy. Adding a young, inexperienced driver can be a false economy, as the premium will be affected by the youngest driver, who may not have a no-claims bonus.
4. Pay annually if you can
If you can afford to pay your yearly premium upfront, you could save money. Many opt for monthly payments to avoid having to part with a large sum of money in one go, but most insurers charge you interest on the monthly instalments..
5. Don't pay for cover you don't need
Some car insurance deals include extra benefits, such as a courtesy car, windscreen cover, breakdown cover and motor legal protection, all of which will almost always increase the cost.
6. Clear out your garage
If you have a garage full of junk, making room for your car could cut down on your insurance premiums. Likewise, if you have a drive, make sure you park on it, not on the street
7. Dial down your customisation
If you like adding fancy wheel trims or racy spoilers to your car, consider how much extra you might have to pay to insure it. Most insurance companies charge more if your car has been tweaked from the original spec
8. Drive fewer miles
Make sure your renewal has the correct annual mileage. Many people are still working from home, so are driving far fewer miles than they did before the pandemic. The more miles you drive, the more you will pay.
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