Surprising UK towns where car insurance is £800 cheaper

The cost of car insurance can differ greatly and depends on a range of factors, including your age, job, mileage, and even your marital status.

It might come as a surprise to you, but where you live can also significantly impact how much you pay for cover. Areas with higher rates of accidents and crime may result in larger premiums.

With this in mind, we asked the leading online comparison service Go.Compare to scan its data to find the top 20 places with the cheapest and most expensive car insurance premiums.

It would seem that motorists living on the Isle of Man and in some remote Welsh towns don’t have to spend much on their yearly cover, with average premiums as low as £258.

Contrast that with the London boroughs of Barking, Southall, Ilford and Wembley, where an annual car insurance premium is north of £1,000.

“As the data shows, busier and more densely populated areas tend to top the list of the most expensive locations for car insurance, while rural areas dominate the list for the cheapest areas,” added Tom Banks of Go.Compare car insurance.

Top 20 cheapest towns/boroughs to insure your car 

 Based on the median premium of car insurance sales made through Go.Compare between 1 Oct 2024 and 31 March 2025 split by towns 

© Getty Images

Top 20 most expensive towns/boroughs to insure your car 

© Getty Images

Factors that affect car insurance premiums

 Have you ever wondered what drives up the cost of car insurance? Here are some of the biggest risk factors used by providers: 

1. Your age – Younger drivers have less experience at the wheel than older drivers, so they’re statistically more likely to be involved in an accident.
2. Your occupation – Broadly speaking, people who travel a lot for work are seen by insurers as high-risk, while those with desk jobs are lower risk.
3. The car you drive – Choose a car with a low insurance group for the cheapest insurance quote, which means a small, economical car with a less powerful engine.
4. Where you live – Areas with low rates of accidents and crime are likely to be cheaper to insure a car.
5. Car security – Enhancing your car’s security through measures such as installing a car alarm and immobiliser will lead to lower insurance rates.
6. Where you park – Parking your car in a garage or a safe, well-lit area can contribute to lower premiums.
7. What type of policy you choose – The cheapest type of car insurance policy is typically third-party only. However, in some cases, third-party, fire & theft (TPFT) or even comprehensive policies can be more affordable, depending on a driver’s profile and risk factors.
8. How you use your car – ‘Social, Domestic and Pleasure’ use is likely to be cheaper than ‘Social, Domestic, Pleasure and Commuting’ or using a car for business.
9. Your claims history and no-claims bonus – If you’ve never made a claim, built up a no-claims bonus, and your licence has never been endorsed, you’ll enjoy smaller car insurance premiums.
10. Your excess – If you want to pay less for your insurance, it’s worth opting for a higher voluntary excess (the additional amount you choose to pay towards a claim, on top of the compulsory excess).
11. Your mileage – If you spend a lot of time driving long distances, your premium may be higher as the odds of you being in an accident are higher than someone who doesn’t drive as far.
12. Insurance tax rate – Insurance Premium Tax (IPT) is a government tax on car, home, van, travel and pet insurance policies, which is factored into the price of your insurance (cars are subject to the standard rate of IPT at 12 per cent).
13. Fraudulent claims – Insurance fraud, such as crash for cash or fake whiplash claims, can drive up the cost of everyone’s premiums.