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The cheapest postcodes for car insurance

The cheapest postcodes for car insurance

Where you live can make a big difference to the cost of your car insurance. Premium prices can vary significantly between postcodes, even if they’re just a few miles apart.

Here’s our guide to the cheapest car insurance postcodes in the UK.

Daniel Hutson
From the Motor team
minute read
posted 20 JULY 2020

Why does my postcode affect the cost of my car insurance?

Your address is an important factor for underwriters when it comes to calculating your car insurance.

Car insurance is based on the risk of you making a claim. Underwriters will study the statistics in your local area to work out how much of a risk your postcode is. This includes information on:

  • population density
  • traffic density
  • crime rates
  • personal injury claims in your area
  • number of claims in your area (including fraudulent claims)
  • number of accidents in your area
  • road systems that pose a higher risk, such as junctions, roundabouts and cycle lanes

Based on these statistics, it’s easy to understand why a postcode in a rural, low-population area is considered a lower risk than an urban or inner city postcode.

The cheapest postcodes for car insurance

Our experts have put together the cheapest average premiums based on postcodes, as well as the cheapest average car insurance by region within the UK.

Top ten cheapest postcode ratings for car insurance

Postcode Average premium**
GY £449.30
TR £471.93
ZE £473.73
EX £476.89
LD £477.67
DG £505.38
KW £509.74
DT £510.10
KY £510.66
HR £511.59


Cheapest car insurance per region

Region Average premium**
South West £541.49
Scotland £576.27
Wales £596.09
South East £636.77
East Anglia £663.77
North East £675.42
East Midlands £679.11
Northern Ireland £726.16
Yorkshire And The Humber £781.29
West Midlands  £802.59
North West £821.21
Greater London £1,095.35

**Our average premiums are from Compare the Market data from 1 March 2020 to 1 June 2020 and are based on all our customer car insurance quotes, from people with different age ranges, addresses and driving histories. You may find a cheaper or more expensive quote based on your personal circumstances.

How can I cut the cost of my car insurance?

Even if you don’t have the cheapest car insurance address, there are still ways to help cut the cost of your car insurance, such as:

  • lowering your annual mileage
  • building up a good no claims discount
  • increasing your voluntary excess

The good news is that you don’t have to live in one of the cheapest postcode areas to still get a great deal on your car insurance. You could save up to £289*** when you compare car insurance with Compare the Market.

Compare car insurance quotes today, to see if you can save. Quoting with us could be the ideal way to find a cheaper deal.

***Based on Online independent research by Consumer Intelligence during May 2020 50% of customers could save up to £289.85 on their car insurance premium.    

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