Motorists in the east of London face the highest premiums in the UK for their car insurance while those in the Isles of Scilly have the lowest, research has revealed.
Residents of Newham pay to most for car cover, according to data from Compare the Market, with drivers in the east London borough forking out an average premium of £1,522 a year.
The figures have been crunched by the comparison website’s new tool, which tells motorists how the cost of their car insurance compares to that of people in their area, as well as how premiums across the country stack up.
It found that Tower Hamlets, also in London, was home to the second highest average car insurance bill of £1,366.69 a year.
A new car insurance tool will tell motorists if they’re paying more or less than others nearby
Compare the Market said it launched the calculator to help drivers who could be overpaying on their premiums – with motorists keen to minimise costs at a time of drastic financial uncertainty.
All data was sourced from the comparison website with the average insurance cost calculated by the average of the top five cheapest prices presented to a customer, where a consumer has clicked through to buy.
Buying from the top five cheapest prices presented represents 90 per cent of all car insurance sales, the comparison firm said.
It found that after Newham and Tower Hamlets, the borough of Brent in North West London was the third most expensive place on average for insurance, coming in at £1,324.92 a year.
On the other hand, the cheapest car insurance quotes are found in the South West, specifically on the Isles of Scilly. Here, drivers pay an average of £329 per year – four times less than those in Newham.
The Orkney Islands is the next cheapest place for car insurance quotes at an average of £442.05 a year, as rural locations dominated the cheapest areas for motor cover.
West Devon came third with an average price of £445.65 – hundreds of pounds cheaper than those driving in the capital.
Areas paying the least
1) Isles of Scilly: £329.45
2) Orkney Islands: £442.05
3) West Devon: £445.65
4) Isle of Wight: £447.04
5) Torridge: £449.72
6) East Devon: £456.40
7) Kerrier: £463.92
8) North Norfolk: £465.19
9) Fareham: £466.01
10) East Lothian: £467.98
Areas paying the most
1) Newham: £1,521.66
2) Tower Hamlets: £1,366.69
3) Brent: £1,324.92
4) Hackney: £1,301.23
5) Barking and Dagenham: £1,295.74
7) Redbridge: £1,267.36
8) Haringey: £1,262.19
9) Kensington and Chelsea: £1,231.70
10) Enfield: £1,220.51
Drivers in London are paying the most for their car insurance with Newham coming in top
Separate research from Compare the Market found that more people have been saving money on their car insurance.
It found the difference between the average and cheapest premiums between June 2020 to August 2020 has fallen over the past three months to 14.75 per cent.
This is down from 15.3 per cent in the last quarter. The savings variable has consistently remained significantly lower than its peak of 17.62 per cent in the first quarter of 2017.
The reduced difference between suggests that more drivers have been shopping around for their motor insurance, resulting in more pricing competition between insurers as people take advantage of significant savings.
The research also found that average car insurance premiums have fallen by 7 per cent since the start of the lockdown, as many drivers have been forced off the road and insurers have reduced their prices.
More recently, premiums have remained flat over the past quarter with a £1 reduction over the past three months.
Continued support for drivers
The news come on the back of the Association of British Insurers (ABI) revealing that support to both those working from home due to the pandemic and drivers have been extended until 31 December 2020.
The continued extra support to 27million motor insurance customers means if you have to drive to and from your workplace because of the impact of Covid-19, your insurance policy will not be affected.
Similarly, if you are using your own car for voluntary purposes to transport medicines or groceries to support others who are impacted by Covid-19, your cover will not be affected.
This applies to all categories of NHS Volunteer Responders, including transporting patients, equipment, or other essential supplies.
In no circumstances do you need to contact your insurer to update your documents or extend your cover.
The temporary pledges remain under review with the next review of home and motor insurance taking place in advance of 31 December.
If policyholders have less temporary changes in their working at home or driving patterns that will continue into the next 12 months and are renewing their insurance policy, they should discuss these changes with their insurer.
Laura Hughes, ABI’s Manager of General Insurance, said: ‘The extension of these temporary pledges underlines the commitment of insurers to helping customers through these continued challenging times.
‘From pledges of extra support, paying over £1.8billion in Covid-related claims, and donating through the Covid-19 Support Fund over £100million to help the most vulnerable, insurers continue to do all they can to help their customers and wider society during the crisis’.
How to save on insurance bills now
Millions of people are needlessly overpaying when their insurance automatically renews. But you don’t have to and it’s easier than you might think to fight back to beat the loyalty penalty.
With our new partner, Compare the Market, you can compare insurance and exclusive deals.
Could you save hundreds of pounds a year on your home insurance, car insurance, travel insurance as well as pet, motorbike and van insurance? Ue the tool to check.