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The car insurance postcode lottery

How your postcode can add £691 to your premium

car on map

Newly released figures from the AA show that where you live can as much as quadruple what you pay.

According to the AA’s latest index of car insurance premiums – which examines typical prices across the UK – a driver living in central London faces paying as much as £922.44 on their annual insurance policy. The same driver on the Isle of Man, meanwhile, would have to pay just £231 – a little over a quarter of the cost.

How prices differ

The average premium in London – the highest in the UK for motorists who shop around – is closely followed by Ilford, Greater London (£912.07), with Manchester in third place (£820.63). The Isle of Man is the cheapest, followed by Kirkwall in the Orkney Islands, Scotland (£252.13), then Truro in Cornwall (£279.72).

The AA, which anticipates a general increase in insurance prices in the near future, attributes the regional differences to varying risks of collision, motor crime, uninsured driving and fraud.

How haggling can help

However huge some of the differences may be, though, you needn’t move to the Isle of Man to reduce your insurance costs. In a study of 1,174 policyholders last year, Which? found that drivers who were prepared to negotiate their renewal quote could lower it by £75 on average where they remained with their current insurer – and by as much as £131 where they haggled with, and switched, insurers. To help you get the best price from your insurer, we’ve provided an online haggling script.

More on this…

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms & conditions of a provider before committing to any financial products.

Categories: Money, Money-saving tips, Savings & Isas

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