fbpx

These are the cheapest (and most expensive) areas for car insurance in the UK

The amount you pay for your car insurance is determined by several factors. These include your age, the car you drive, your occupation, your annual mileage and where you park your car at night. But did you know that your postcode can also significantly affect your premiums?

Recent research by Compare the Market shows that car insurance costs in different areas across the UK can vary significantly, with drivers in some of the most expensive areas paying up to four times more than their counterparts in the cheapest postcodes. Here is the scoop.

[top_pitch]

Which are the cheapest areas for car insurance in the UK?

Data from Compare the Market reveals that drivers in the Isles of Scilly spend the least on car insurance, paying an average of £308.76 a year. Drivers in West Devon and the Isle of Wight also enjoy relatively cheap insurance premiums, only paying an average of £412.15 and £413.01 respectively.

South Hams and Teignbridge round out the top five places in the UK for cheap car insurance, with drivers paying £423.08 and £424.24, respectively.

Here is the complete list of the top ten cheapest places in the UK for car insurance.

Rank

Local authority

Average car insurance quote

1

Isles of Scilly

£308.76

2

West Devon

£412.15

3

Isle of Wight

£413.01

4

South Hams

£423.08

5

Teignbridge

£424.24

6

Berwick-Upon-Tweed

£429.53

7

Stroud

£426.64

8

Carrick

£433.44

9

East Devon

£435.72

10

Mid Devon

£436.86

 

Which are the most expensive areas for car insurance?

London boroughs dominate the list of the most expensive postcodes for car insurance.

According to the data, Newham is the most costly postcode in the UK for car insurance, with drivers spending an average of £1337.74 each year.

Other expensive areas include Tower Hamlets and Haringey, where drivers have to pay £1,311.73 and £1,232.87 respectively.

Here are the top 10 most expensive areas for car insurance in the UK.

Rank

Local authority

Average car insurance quote

1

Newham

£1,337.74

2

Tower Hamlets

£1,311.73

3

Haringey

£1,232.87

4

Westminster

£1,227.61

5

Brent

£1,206.32

6

Hackney

£1,205.04

7

Kensington & Chelsea

£1,154.36

8

Barking & Dagenham

£1,151.95

9

Manchester

£1,120.87

10

Redbridge

£1,119.56

 

[middle_pitch]

Why is there such a large difference in premiums across different areas?

According to This is Money, the huge disparity between car insurance costs across the country is mostly due to the varying risk profiles that insurers judge for pricing.

For example, the majority of accidents happen in towns and large cities. This translates to a higher risk profile, and drivers of cars in these areas are consequently likely to pay higher premiums.

Similarly, the rate of crime, including car theft, is higher in urban areas than in rural areas, meaning that drivers in rural areas are likely to pay lower premiums.

How can you cut your car insurance costs?

Even if you live in an area where car insurance costs are not exactly the cheapest, there are ways to cut costs.

Ultimately, the best way to make sure that you are not paying more than you need to on your car insurance is to shop around and compare different quotes. An easy way to do this is using car insurance comparison sites like MoneySuperMarket and Confused.com.

When comparing quotes, keep in mind that the cheapest option isn’t always the best. You shouldn’t take out a policy based on price alone. Make sure that you’ve done your homework on any policy that has piqued your interest to confirm that it covers everything you want and that the provider will actually pay out when you need them to.

Meanwhile, here are other ways to potentially cut your car insurance costs:

Limit your annual mileage
Pay for your insurance annually (to avoid interest charges)
Increase your voluntary excess
Add a second low-risk driver to your policy
Go for black box insurance, especially if you are a young driver

The post These are the cheapest (and most expensive) areas for car insurance in the UK appeared first on The Motley Fool UK.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

More reading

How I’d use £1,000 to make passive income from renewable energy stocks
130k Londoners are facing a fine of £12.50 per day for driving older cars!
Lloyds (LON:LLOY) profits surge: bank upgrades forecasts
3 UK dividend stocks to buy for passive income
Budget 2021: what the fuel duty freeze means for motorists

Leave a Reply

%d bloggers like this: