The postcodes with the cheapest car insurance

According to the latest AA British Insurance Premium Index, the average price of annual fully comprehensive insurance has fallen again this year by a record amount.

But if you live in certain parts of the UK, this news will not make you happy. Although the average price has fallen, there have been price drops in some regions. increasedAnd while premium costs have dropped by over 7% in some areas, drivers in those areas can still expect to pay much more than average.

(First Kitemark for a financial product)

Postcode lottery

According to the AA, the study highlights the importance of a person’s postcode in calculating premiums.

Janet Connor, chief executive of AA Insurance, says the price differences are due to a number of factors, from the age and experience of the driver to the higher risk of accidents in urban areas. It also takes into account the number of car crimes “such as theft of or from a vehicle, driving without insurance or attempts at ‘cash for crash’ fraud.”

“Sadly,” she says, “some people’s criminality has a detrimental effect on the premiums that honest drivers pay in such places.”

The cheapest postcodes

The cheapest car insurance premiums can be found on the Isle of Man, which has a population of just 85,000 or so. And while that figure may not be helpful for those of us on the mainland, it’s notable that Scotland, Wales and the south west of England have towns that compare quite well to the rest of the country.

Premiums have fallen in all top 10 postcode areas over the last quarter, and the average price of insurance there remains below £300.

The most expensive postcodes

In the UK’s major cities, drivers are now paying at least double the cheapest UK rates for their insurance. Insurance prices have fallen in five of the ten most expensive postcodes, and risen in five. But to give an example, even with a quarterly fall of 7.2%, people in Oldham can still expect to pay almost £800 a year for their insurance, which is well over double the cheapest postcode rates.

The story continues

Source for all tables: The AA

London is, unsurprisingly, at the bottom of the table, even after a 5% decline in the last quarter. Positions 113-121 include the postcodes W, NW, N, E, SE, SW, EC and WC.

The average cost reflects the number of expensive cars insured in the city, the density of traffic in London (which increases the risk of accidents on the roads) and the greater likelihood of theft or damage.

What happens next with the bonuses?

The current pattern of falling premiums cannot continue, says Janet Connor of the AA. She notes that there are “some signs of a reversal of the downward trend” due to average premium increases in some areas of the UK. She says some insurers appear willing to raise their prices and believes “this time next year the AA’s index will reflect an increasing trend.”

However, it does not expect inflation to rise as sharply as between 2009 and 2011, when premiums rose by more than 40 percent within twelve months.

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