Inner-city dwellers could pay over three times more to insure an average family car than those living in rural areas, the AA’s annual ‘family car’ survey has found.
The survey also found that while the national average cost of insuring a typical mid-range car (a Ford Focus) has increased over the past year by only £9 to £369, the smallest rise for nearly eight years, insurance premiums in some inner-city areas have risen by up to £50.
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Liverpool L6 has become the most expensive postal district in which to insure a car with an average premium of £640.
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Birmingham B8 follows with an average of £591, slightly ahead of London EC1P, 2P, 3P and 4P at £588.
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Last year’s highest average postal district was Wythenshawe, Manchester M23, at £567. Average premium in this district has fallen to £530.
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Districts with the cheapest mainland average, at £267, are in the Perth PH postal area, which includes the Scottish Highlands.
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The most expensive geographic area to insure a car is Greater London at £522 (last year £496).
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Average premiums have fallen in the Midlands, South East, Wales, East Anglia and the Islands.
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The average cost of insuring a Ford Focus in Great Britain is £369 (last year, £360).
But these averages mask wide extremes in some specific postal sectors (there are about 20 sectors in each postal district). Neale Phillips, director of AA Insurance explains:
“Nowhere is this better illustrated than in the Newcastle-upon-Tyne postal area (NE) which boasts both the highest and lowest individual premiums in mainland Britain. Some inner-city postal sectors command premiums of £782 (also shared with parts of Leeds and Sunderland), four times more than the £192 paid in the Kielder Forest, which is only 40 miles away.”
“There is, of course, a correlation between car crime figures and insurance premiums,” says Phillips. “Cars are most likely to be stolen in parts of Liverpool, Manchester, London, Cardiff and Bristol and premiums reflect this. But stolen cars represent only about 12 per cent of claims that insurers deal with.”
Phillips points out that in densely populated areas cars are more likely to be parked in the street, attracting both opportunist thieves and vandalism. Heavy urban traffic is also more likely to result in claims for accident damage and injury.
“Accident victims are now much more likely to claim compensation for injuries such as whiplash, adding to the cost of insurance,” says Phillips. “There is also growing concern about the number of uninsured drivers. Police estimates suggest that in some areas such as Liverpool and Manchester, up to one in four vehicles are driven uninsured and premiums for the law-abiding majority will reflect that risk.”
The survey shows that living out of town will save you money on your car insurance. For instance, if you live in rural Kent you can expect to save around £240 compared with living in central London – which is only enough to pay your congestion charge for 48 days.
The AA’s annual survey compares the typical rate for insuring a Ford Focus car owned by a 37-year-old factory worker and his 35-year-old partner, both with full no-claim bonus and clean licences, in all 50,000 British postcode sectors.
“It’s always worth shopping around for car insurance – or use a major broker such as the AA who can find the lowest premium for you,” Phillips adds.
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