04 April 2018, 10:53

The UK’s postcode premium hot spots are revealed.

Research from GoCompare reveals the hot spots for car insurance in the UK. 

  • Research reveals where you live dramatically affects the cost of your car insurance.
  • Londoners are paying more than double the UK average for car insurance.
  • The UK average for car insurance is £826.77. 
  • West London is the most expensive for car insurance, with residents paying from £1,734.80 for the cheapest premium.
  • Galashiels, Scotland is the cheapest postcode for car insurance, with residents paying from just £544.84 for the cheapest premium.

Research from GoCompare Car Insurance has found Londoners are paying a whopping £1,189.96 more for their car insurance than some other parts of the UK.

With the average UK premium for car insurance at £826.77, residents in West London are paying over £908 more than the rest of the UK.

The top five hotspots for car insurance premiums were all in the Greater London area. West Londoners are top, paying an average of £1,734.80 for the cheapest premium. East Londoners are second, with an average starting premium of £1,516.32, Central West London third with premiums starting from £1,433.88, Central East London forth, with residents paying from £1,319.33 and finally, North Londoners came fifth, paying an average of £1,309.83 for the cheapest premium.

The cheapest premiums in the UK were found in Galashiels, Scotland, where residents pay an average of £544.84 for their best premiums. Exeter is second, with average premiums starting from £559.47, Truro in Cornwall is third, with average premiums starting at £562.19, Perth, Scotland is forth, with starting best premiums at £566.25 and Dumfries is fifth, with residents paying from £568.26.

This shows a difference of £1,189.96 between highest and lowest premiums by postcode.

But why are certain postcodes attracting such high premiums?

GoCompare Car Insurance’s Matt Oliver, said: Where you live has an overwhelming impact on the price of your premium. There are a number of factors which could influence this, in particular, how high the crime rate is, how dangerous the roads are, as well as the number of claims actually made in a particular area. Insurers will therefore deem areas with higher crime and claim rates a higher risk, which pushes the premium up.

“Another factor is car type. Affluent areas of West London are more likely to have vehicles with bigger price tags, engines and gadgets, which again, bumps the average best premium up in this area.

“Areas of the country where the premiums are the lowest, in Scotland, Devon and Cornwall, are less built up, have a lower crime rate and less cars on the road, which could potentially result in less claims. They are therefore deemed as a lower risk by insurers, making premiums considerably less than the London area.

“It’s worth residents in high-premium postcodes considering a few things before taking out their car insurance. Consider changing your vehicle to something more affordable, with a smaller engine – as this could lower the amount you pay. Also, a big no-no for saving money is auto-renewal. Often the best offers are there to entice new customers, so it’s worth shopping around for a new policy instead of watching the price creep up when you auto-renew.”

For more information on what can affect your car insurance premiums, follow our guide: http://www.gocompare.com/car-insurance/how-your-job-affects-your-car-insurance/.

-Ends-

For further information, please contact:

Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter; @GoCompare

 

Notes to Editors

One quote per customer taken into account, first quote customer made in the one-year period (18/2/2017 – 17/2/2018).

Areas divided not by city but by Postcode Area Name.

Figures relate to the Best Premium (cheapest premium given for each quote).

About GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

GoCompare does not sell its customers’ data.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocomparegroup.com

Contact Information

Louisa Marsden

louisa.marsden@gocompare.com