UK Car Insurance Blackspots (Part One)

Let’s look at the tale of two motorists, John and Will, who are both 24 years of age with identical driving histories. They work in the same job, cover approximately 10,000 miles a year in terms of mileage and have passed their advanced Pass Plus driving examinations. John and Will are yet to be married, they live on their own and both drive the same make and model of car, both of which were manufactured in the same year.

Our intrepid heroes insure their vehicles through the same car insurance company and have the same options on their individual policies. Both drivers appear to be ideal candidates for cheap car insurance rates but somehow, poor old John pays £300 to insure his vehicle every year, while lucky old Will only has to stump up £237 for his. What makes Will so different that he pays a whole £63 less for his car insurance every year? It’s all very simple really. Will lives in Leeds where claim and accident rates are quite low, while John lives in Liverpool, which is one of the UK’s major car insurance blackspots.

Location and Premiums

Car insurance is factored on a basis of risk and carriers take many different things into account when underwriting a policy. Two of the most significant factors underwriters use are the risks of overnight parking in the place where you live and the number of claims made by policyholders from the same car insurance company who live in your area. When these factors are combined, they have a direct impact on car insurance premiums. Research carried out by the Money Supermarket website in 2007 revealed that car insurance rates are at their highest in East London and at their lowest in Dundee, Scotland.