AA data reveals wide variance in premiums paid throughout UK

Car insurance is four times more expensive in London than in the Isle of Man, according to new data from insurance broker AA Insurance.

Drivers in London postcodes, where motor insurance is most expensive, paid an average of £922.44 for a car insurance policy in the second quarter of 2014, according to the AA British Insurance Premium Index.

But drivers in the Isle of Man, the cheapest postcode, paid a quarter of that amount at £231.49.

The cheapest onshore motor premium can be found in Truro at £279.72.

The data highlights wide variances in premiums across the UK (see tables below).

The AA’s data also shows that while motor rates are falling on average across the UK, they are rising in some postcodes.

Ilford, for example, the second most expensive postcode after London, boosted rates by 4.5% in the second quarter of 2014 (see tables below).

The AA announced last month that the average Shoparound premium for comprehensive car cover fell by 6.1% to £504.29 in the second quarter of 2014.

The AA’s Shoparound price is the average of the cheapest five premiums for each risk.

The latest Biba/Acturis Index, released today, supports the AA’s findings on rate decreases.

AA Insurance managing director Janet Connor said: “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 of or from a vehicle, uninsured driving or attempts at ‘cash for crash’ fraud.

“Sadly, the criminality of some people has a detrimental effect of the premiums paid by honest motorists in such places.”

Connor pointed out that premiums had fallen on average and some of the biggest falls had been seen in areas that have traditionally paid most.

But she added: “There are some signs of the downward trend reversing with average premium increases in a few of postcodes.

“I hope that the measures being introduced by the Ministry of Justice to curb fraudulent injury claims and continued work by the Motor Insurers’ Bureau and the police to reduce the number of uninsured drivers, will help to ensure premiums in such places are affordable.”


Top five cheapest car insurance postcodes

PotscodeAverage Shoparound premiumQuarterly rise/fall
IM (Isle of Man)£231.49-3.3%
KW (Kirkwall)£252.13-1.9%
TR (Truro)£279.72-1.8%
AB (Aberdeen)£285.82-0.5%
DT (Dorchester)£286.26-1.9%


Top five most expensive car insurance postcodes

PotscodeAverage Shoparound premiumQuarterly rise/fall
IG (Ilford)£912.074.5%
M (Manchester)£820.63-4.1%
UB (Southall)£807.113.6%
OL (Oldham)£794.78-7.2%

*Includes postcodes W, NW N, E, SE, SW, EC, WC

Postcodes where rates are rising

PotscodeAverage Shoparound premiumQuarterly rise/fall
IG (Ilford)£912.074.5%
UB (Southall)£807.113.6%
RM (Romford)£608.502.9%
EN (Enfield)£623.102.1%
CR (Croydon)£660.971.3%
BD (Bradford)£661.790.2%
HA (Harrow)£764.890.1%


Source: AA

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