Car insurance rates are often set by postcode by insurers based on statistical analysis, revealing that several postcodes in the Manchester, Newcastle, Luton, London, Liverpool, Glasgow, Bradford, and Birmingham areas are the most expensive ones to live in. On the other side of the coin, motorists residing in areas of Oxford, Devon, Kent, and Cheshire can reap the benefits of living in the least expensive postcodes in the UK in regards to insurance claims.
While insurers use any number of metrics to determine premium pricing for their customers, such as the value of a vehicle and the age and experience of a given driver, one of the most influential factors is where the car is kept overnight. Living in the ‘wrong’ postcode can lead to insurers ratcheting up the price of annual cover, and if a vehicle is kept on the street instead of in a drive or a garage can raise this figure even higher, experts say.
Risk by location in the UK is calculated with such exactitude that there can be high-risk postcodes located directly adjacent to low-risk ones. In fact, there are instances of some drivers moving just a few hundred feet down the road yet finding the price of their insurance has rocketed as a result – and this can often result in disgruntled customers switching insurers in search of a better deal.