The most expensive cities for car insurance revealed

The UK’s worst cities for car insurance costs have been revealed, with Liverpool topping the table with an average premium of nearly £900.

New research has revealed the UK cities with the most expensive and cheapest average premiums, with Merseyside drivers paying a huge £884 per year - almost three times what those in the cheapest postcode pay.

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English cities dominate the list of the most expensive areas, although Belfast creeps in to ninth place. On average a driver in the 10 most expensive cities will spend £740.50 a year on car insurance - more than twice that spent by those in the cheapest cities, where the average premium is just £345.57

In general, cities with larger populations bring higher insurance costs and while Liverpool topped the table for insurance costs, it was closely followed by Manchester, Birmingham and Bradford. Despite its massive population, London was only fifth on the list, with an average insurance cost of £725 a year. Sheffield, Nottingham, Salford and Preston completed the top 10.

Top 10 most expensive cities for car insurance

CityAverage quotePopulationLiverpool£884.51496,784Manchester£848.97553,230Birmingham£738.671,149,000Bradford£736.77536,986London£725.608,982,000Sheffield£713.03584,028Nottingham£709.44331,297Salford£708.68245,600Belfast£699.13280,211Preston £640.16141,818

Scotland dominated the list of cities with the lowest premiums. In Aberdeen, drivers pay an average of just £309.14 per year, followed by Perth, at £324 and Truro, in Cornwall (£325.20). Larger cities including Swansea and Edinburgh were also among the cheapest 10 postcodes, despite their relatively large populations.

“Location is one of the most important factors determining car insurance costs” says Jessica Potts of Book My Garage, which conducted the research. “The majority of claims occur within just five miles of the driver’s home, so residing in areas with higher theft and accident rates impacts premiums.

“While the research shows what a typical driver in these locations can expect to pay, it doesn’t cover every eventuality. Some may find their circumstances produce different results. The study does give us an intriguing insight into the regional difference across the UK - it is certainly good news for some.”

While insurance costs will vary between drivers there are some steps you can take to try to cut down your costs, including considering black box insurance, thinking about who is included on your cover and considering what you need to use your car for. For more ways to save money on your car insurance read our guide here.