The Cheapest & Most Expensive Places to Insure Your Car

Car insurance stands as one of the largest expenses for UK drivers, often costing hundreds or even thousands of pounds each year. And, while factors like age and experience play an important role in determining premiums, where you live continues to have a dramatic impact on how much you pay for insurance. 

In fact, the difference between the average insurance cost in the most and least expensive locations is over £500, enough to buy a whole other vehicle (though, not a very good one!).

Read on for the latest figures and regional variations in car insurance pricing to know just how much your postcode affects your premium.

Where are the most expensive places to insure your car?

According to the latest research from Forbes in collaboration with QuoteZone, the most expensive places to insure your car are London, the West Midlands, North West England, Yorkshire, the East Midlands, and the South East. 

In the first quarter of 2025, the Association of British Insurers revealed that the average car insurance policy cost £589, over £430 cheaper than the average cost in London.

Why is London the most expensive place to insure a car?

Unsurprisingly, London comes out on top for priciness, as it does on other cost-of-living lists. But why is car insurance particularly costly in the capital? 

Car insurance tends to cost more in urban areas because there's a greater risk of accidents due to increased traffic and crime due to a denser population. 

Where are the cheapest places to insure your car?

The 2025 Forbes data reveals that the cheapest areas to insure a car in the UK are less central areas such as Scotland, Wales, and the South West. This is good news for drivers in Devon and Cornwall, who get sea views as well as lower premiums.

Is car insurance getting more expensive?

While the regional variations may be shocking, you can take comfort in the fact that car insurance itself is actually not getting more expensive right now. After years of hikes in premiums, prices are finally falling. 

The ABI has recorded a 5% decrease in prices between Q1 2025 and Q4 2024 and a 7% decrease compared to the same period in 2024. 

Similarly, the latest Confused.com Car Insurance Price Index has recorded that comprehensive car insurance premiums have decreased by 17% (£164) during the last 12 months, in the biggest annual percentage decrease since 2014. 

Why does location impact insurance costs?

As we’ve seen, where you are in the UK can have a significant impact on how much insurance you’re paying for your car each year. But why?

There are a number of location-based factors that influence insurance costs in certain areas, including: 

• Population: More densely populated areas (like inner city zones) are more likely to have higher traffic levels, increasing the risk of accidents.
• Frequency of accidents: Locations where accidents are typically more common are likely to have higher premiums.
• Local road conditions: Areas with poor road conditions and infrastructure are more likely to see a greater number of accidents, upping premiums
• Crime rates: Areas where crime rates are higher (especially things like vandalism or car theft/break ins) can also increase insurance costs.

What else affects insurance premiums?

How expensive your car insurance is, is not only affected by where you are in the country, but also by the following factors:

The driver

How old the driver is, their gender, their occupation, and their driving record can bring premium costs down (or the opposite, in the case of a bad record!). Typically, younger drivers are considered higher risk so their premiums are higher, while certain professions can be seen as “high risk” too.

The vehicle

Certain makes and models (like those with high repair costs or lower safety ratings) can cause premiums to skyrocket. Similarly, the age of a car is an impacting factor too, with newer, higher value cars having more expensive insurance costs.

Certain vehicle modifications can also cause premiums to rise, as can mileage (the more mileage you cover, the higher you’ll likely have to pay).

That said, it’s not all about location, location, location.

How to keep insurance costs low

While you can’t control where in the country you live, there are a number of other steps you can take to help bring down the cost of your car insurance slightly:

• Installing security features to your car (such as dashcams, alarms, and immobilisers) can help bring down costs by reducing the risk of damage or car theft. 
• Reducing mileage. Sometimes reigning in the miles can help with lowering premium costs. 
• Opting for a “safer” car. Certain cars benefit from lower insurance premiums on account of their safety ratings. Do your research and see which types of cars would suit you and cost less to insure. 
• Increasing excess. Your monthly premium can be lowered by increasing your excess (though, if you do need to make a claim, you’ll have to pay more).

Take the hassle out of car care with Kwik Fit

If you’re struggling to keep up with your car care, keep things simple with Kwik Fit. We have a range of simple ‘how to’ guides that make it easy to keep your car well-maintained and road-ready, from insurance to tax. 

Want to take the guesswork out of insurance? For peace of mind and comprehensive coverage, you can always rely on Kwik Fit’s car insurance. Contact our team today for any questions or pop into your local Kwik Fit.