The car insurance postcode lottery

18 August 2014

scrapped-car Car insurance is unfair, everyone knows that. However, someone's gone to the trouble of finding out just how unfair it is.

Take two drivers with identical cars, spotless driving history who park their cars on their respective drives, but in different areas, and you'll find there's a discrepancy in how much their car insurance costs.

For example, someone who lives in London will pay three times the amount of someone in the Isle of Man. It doesn't matter if you're a responsible driver - if your car has a greater chance of being nicked, then you have to pay for it.

Central London motorists pay an average of £922 a year on insurance, whereas those in the Isle of Man pay just £231, according to figures from the AA.

London boroughs and those just outside it attract top premiums, while in the North, Manchester residents will pay £821, and folk in Bolton and Liverpool will cough-up £737 and £720 respectively. Meanwhile, up in Scotland, someone in Aberdeen will pay £286 on average, while someone who drives in the Orkney Islands will pay just £252. The cheapest rates in England can be found in Truro, Cornwall (£280) and Dorchester, Dorset (£286).

It seems that, where car insurance is already cheap, the premiums are most likely to fall as well. Not in London. Drivers in the capital are just going to be asked for more and more as time goes on.

Janet Connor from AA Insurance said that insurers are looking to put their prices up across the board: "I believe that this time next year, the AA’s Index will be reflecting a rising trend (in cost). But I don’t expect to see the sharp premium inflation we saw between 2009 and 2011, when over a 12-month period premiums rose by more than 40 per cent."

"The premium reflects the likelihood of a claim being made and, in some urban areas, there is much greater risk of a collision taking place, or of car crimes such as theft. Sadly, the criminality of some people has a detrimental effect of the premiums paid by honest motorists in such places."

 

TOPICS:   Motoring   Insurance

11 comments

  • Ol' P.
    And in other news, day follows night.
  • His V.
    at night we bum badgers
  • David
    So if you live in a dodgy area then you insurance premium goes up? Shocker, thanks for letting us know.
  • Andy A.
    boo hoo - poor london people
  • Ray P.
    so, where the risk of theft, serious damage or injury to pedestrians/third parties is higher the premium reflects that higher risk?
  • Karl B.
    This is obviously not news, however the thing that bugs me is the huge variance in price within a very similar area. Within a 3 mile distance I found a insurance premium vary between £460 and £1350 with the only change being the postcode. Its just silly, on burton road in manchester the price varied between £600 and £850 from one end to the other, its only a mile long road, if that! I think the prices should be averaged across a postal code, and not vary hugely from street to street
  • Slacker
    "The car insurance postcode lottery is unfair, everyone knows that" Cobblers. If you live in a shit area (yes, I'm talking about London) where your car is more likely to be rammed by the drunk and the uninsured and/or stolen by chavs, then you pay more. Hardly rocket science, is it??
  • Bogbrush
    I moved about 300m in a small, quiet town and my premium jumped a good 25%+. wankers
  • you
    @Bogbrush - Did you used to live 300m outside Moss Side?
  • David F.
    it's actually cheaper to park on the street than on your drive. By about £50 last year.
  • shiftynifity
    Slacker…WTF do you know about London…your describing any mundane urban area…G.T.F.O

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