You face being charged £2.2k MORE to insure your car if you live in pricy hotspots – here’s how to save

DRIVERS face a pricy postcode lottery when it comes to insuring their motor, it has been revealed.

Some drivers can end up paying up to four times as much for car insurance premiums depending on where they live.

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Drivers face a lottery postcode when it comes to car insurance premiums[/caption]

Dean Smith

It is not only premiums that can be affected by your postcode, compulsory excess can also vary[/caption]

Many factors go into calculating how much drivers pay for their premiums, such as driving history and the type of vehicle.

But analysis from This is Money has revealed that location really can make a massive difference to the cost of your policy.

Insurers tend to keep a tight lid on exactly how they set their rates, but it is known factors such as theft, the chance of flooding and probability of having a crash are all taken into account, when it comes to your address.

A number of quotes were obtained for a range of vehicles keeping everything the same except the postcodes.

The locations ranged from Newham in East London, the place with the UK’s highest premiums, to the rural village of Hodnet in Shropshire, which was voted the poshest in the UK.

Based on a Land Rover Discovery, drivers in East London were paying £2,993.74 compared to £759.71 for drivers in Hodnet.

Whilst the drivers wanting to insure a Ford Fiesta in East London were paying £1,075.45, compared to motorists in Shropshire paying £560.45.

A BMW 3 series in West London, would cost £1,072.03 to insure compared to £1,395.95 in East London.

It was also found that it is not only premiums that go up depending on location, but compulsory excess can too.

A driver insuring a Ford Focus would pay an excess of £150 in East London, the area classed as the “riskiest” area.

This rose to £350 for both West London and Shropshire, for other cars compulsory excesses stayed the same regardless of location.

Also affecting the premiums were the number of insurers willing to give a quote, the research showed that your location could limit the amount of options you have to shop around.

According to information from GoCompare, drivers in East London had the choice of just 4 insurers, when trying to insure a Range Rover, compared Shropshire residents who have the choice of 16.

A spokesperson for the Association of British Insurers trade body said: “Your postcode may impact on the cost of your motor insurance, for example reflecting the vehicle crime rate where you live. 

“But it will be one of many factors that an insurer will consider – such as your age, claims record and type of vehicle – when assessing your risk.

“You may not be able to do anything about where you live, but motor Insurance is competitive, so you can shop around to get the best motor insurance deal for your needs.”