Motorists could have to fork out significantly more for their car insurance simply based on where they live. The postcode lottery could be adding hundreds more annually for their cover. New research reveals that drivers in London pay £1,102 a year for their cover compared to the national average of £736. This £366 a year premium difference was revealed by new figures by comparison site CompareTheMarket.com.
Motorists in the South West of England spend the least on cover at £557, nearly half the amount of those in London.
Premiums were compared by the comparison site between the start of 2018 and 2019 to find out the difference.
Drivers in Scotland and Wales paid the second and third least forking out £581.24 and £637.34 respectively.
The second and third most expensive areas were the North West and West Midlands with drivers foreign out £838.79 and £823.60 respectively.
Insurance premiums are calculated based on a number of factors such as local crime rates and which areas have had the most amount of accidents.
City drivers typically pay more due to the fact that more accidents happen in towns and cities compared to more rural areas.
Despite some drivers having to pay more than £1,000 a year, the latest Premium Drivers report actually showed that costs have dropped by £100 between December 2018 and February 2019.
Dan Hutson, head of motor insurance at comparethemarket.com, said: “People have flocked to high employment areas in recent history but doing so clearly comes at a cost.
“The reasons behind the additional costs for city drivers are fairly clear, with people living in London likely to have a higher risk profile as a result of the higher crime and accident rates.
“But, for Londoners struggling with their car insurance bills, it is essential to shop around to ensure you are on the most competitively priced policy.”