Where does it cost the most to insure your car in the UK?

red car over a lot of stacked coins

There's good news for drivers: a report has revealed that the cost of car insurance is falling. It sounds like we'll finally get some respite after years where the cost of running car seemed to be escalating out of control. However, before you crack open a bottle of engine oil to celebrate, it's worth looking a bit closer at the details.

In some areas of the UK, the cost of car insurance remains punishing, and in others the cost is actually rising. So where are these danger zones?


The report has been produced by Towers Watson and Confused.com. It found that overall the cost of car insurance has fallen an impressive 12.5% in a year, and now stands at £644. This compares particularly well to the all-time high of £858 in 2011.

It identified the areas which had seen the biggest price falls. The biggest drop was in Central Scotland where prices fell 16.6% over the year. This was followed by Manchester/Merseyside where they fell 16%, East and North East Scotland where they dropped 13.9%, the North West where they fell 13.7% and the Scottish Highlands where prices were down 13.5%.

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Most expensive

However, in certain parts of the country the cost of insurance remains astronomical. The report found that the most expensive spot was inner London, where cover costs an average of £1,070 a year. This is followed by Manchester and Merseyside, where it costs £905 and outer London, where the average cost is £830.

The five most expensive regions

Inner London £1,070
Manchester/Merseyside £905
Outer London £830
West Midlands £808
Leeds/Sheffield £756

Prices are still falling in these areas, but clearly they are still considered risky places to drive a car, so cover is particularly painful on the pocket.

Rising prices

And the pain isn't restricted to these areas, because the report also found pockets of the country where prices are rising. It identified the rate that prices were rising fastest - and the change over the previous quarter.

Fastest price rises

1 Scottish Borders 5.2%
2. East Midlands 3%
3. Northern Ireland 2.9%
4. South 2.7%
5. South East 2.3%

Can you save?

For people in those areas where prices are higher, or where they are on the rise, there is still a great deal to be saved by shopping around. Not every insurer will see you in the same light, so take the time to find the one that sees you as most attractive.

Drivers can also take a number of steps to reduce their insurance costs. These include fitting an alarm, parking the car off the street if possible (ideally in a garage), adding a second named driver, avoiding add-ons and taking a higher excess.

It may also be worth considering a policy which comes with a black box fitted to your car to keep an eye on your driving. These policies will reward careful driving, so you only pay for the risk you actually pose.

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The UK postcodes deemed 'high risk' by car insurers
See Gallery
Where does it cost the most to insure your car in the UK?
BD 2,9,10
BH 3-5, 7-9

M 25-29, 32, 34-35, 38, 43, 45-46

CR 0,4,7
DA 8,14-18

DH 5

N 2, 4-6, 8, 10-11, 13, 15-17, 19, 22

RM 1, 6, 9-10, 12

LS 1-13, 15-16, 19, 26-27

E 10-15, 17

IG 3, 9-10

S 4, 9, 11, 13-14, 60-61

SW 1, 3-7, 10, 12-20

W 1-2, 5-6, 8-9, 12, 14

WC 1-2, 99
CH 41-42, 44
CF 5,10-11,14,23-24,63-64
NW 3, 10
DN 1, 4-5, 11-12
EN 2-4
HX 1, 3
NE 2-3, 7, 12, 27-29, 32-33, 36-37, 39
OL 1-5, 7-9, 15
SE 1-2, 4-8, 10-11, 13-19, 21-28
SK 1, 4, 14-16
SM 4, 6
TS 3-4, 6, 10, 20
TW 1, 9, 11
WA 13
UB 5, 7-8
WF 3, 11
WN 1-4, 7
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