The average cost of car insurance can vary by more than £1,000 depending on where you live in the UK. But where are drivers paying the least – and the most?
In another blow for motorists, the latest AA data has revealed that the average price for car insurance premiums has risen by 15% over the past year.
According to the ‘shoparound index’, the price of an annual comprehensive policy is now £971.40.
This figure represents an increase of 15.3% from January 2011 and 5.4% compared with the previous quarter.
The shoparound index averages the three cheapest quotes from a range of insurers and brokers, whereas the main index is an average of all available quotes.
Huge regional variations
Although insurance costs are a concern for motorists across the UK, certain parts of the country are hit harder than others.
Drivers in Scotland pay the least for premiums. The shoparound price in this region is now £587, while the market average stands at £994.
Next up, motorists in the West and West Country benefit from the second lowest costs.
Drivers the North West, however, can expect to pay considerably more, with shoparound prices at £1,615 and a hefty market average of £2,063.
To put these figures into context, the price difference between the cheapest and most expensive regions is more than £1,000.
|
Region |
Market average Jan 2012 |
Market average Oct 2011 |
Shoparound average Jan 2012 |
Shoparound average Oct 2011 |
|
London |
£1,628 |
£1,616 |
£1,120 |
£1,058 |
|
South |
£1,262 |
£1,264 |
£825 |
£789 |
|
Anglia |
£1,212 |
£1,196 |
£769 |
£732 |
|
Central |
£1,429 |
£1,405 |
£962 |
£914 |
|
West & West Country |
£1,203 |
£1,199 |
£748 |
£723 |
|
Wales |
£1,309 |
£1,279 |
£834 |
£790 |
|
North West |
£2,063 |
£2,028 |
£1,615 |
£1,529 |
|
Yorkshire |
£1,610 |
£1,587 |
£1,119 |
£1,065 |
|
North East |
£1,392 |
£1,401 |
£929 |
£893 |
|
Scotland |
£994 |
£998 |
£587 |
£555 |
How your postcode affects your car insurance
When setting premiums, an insurer looks at a number of risk factors including the address at which the vehicle is parked.
The company then examines past claims histories and crime data related to the surrounding area. If the vehicle is parked in a postcode with a high crime rate, the company may increase the cost of premiums to reflect this risk.
Postcodes in urban areas tend to incur more expensive insurance costs as statistically these regions have higher incidences of crime.
Whatever the region, drivers may be able to cut insurance costs by using off-road parking as this may significantly increase the car’s security.
Surprising factors pushing up premiums
While you might expect to pay more for insurance if you have multiple driving convictions or have caused several accidents, other less obvious factors also come into play.
Those whose jobs involve significant amounts of travel or driving at night could find themselves in a higher bracket for insurance costs.
For example, journalists tend to face higher costs due to the perception they will be rushing around to meet tight deadlines.
Likewise, the method of payment could also make a significant difference to the cost of premiums. If you can afford to do so, it could be wise to consider paying annually rather than monthly as many insurers offer a discount to customers who pay their premiums in one lump sum.