RAC Cars News


Car Insurance Postcode Lottery

By raccars Published

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Among the various factors affecting the price of your car insurance premium, some residents of Birmingham are discovering theirs has been affected by an unfortunate proximity to the location of television's notorious 'Benefits Street' programme. SmartWitness Incident Cameras conducted a survey of British cities, that revealed car insurance premiums are higher in Birmingham than other areas.

Organised by postcode, the top ten highest premiums are all in Birmingham and mainly in the vicinity of James Turner Street, as featured in the Channel 4 TV series. The main reason prices are so high in the area is most likely because the largest number of fraudulent whiplash claims are made in the same location. These are estimated to push up the premium of every car owner by about £90.

Birmingham claims the six top postcode locations for Third Party Injury claims in the UK. Bradford is next for TPI claims followed by Manchester and Liverpool. It's no coincidence that the cities posting the lowest numbers of TPI claims also pay the least for insurance premiums, notably in Scotland.

The UK's cheapest insurance premiums are found in Aberdeen - a massive seven times lower than Birmingham. While the insurance premium for a BMW 3 Series belonging to a resident of central Aberdeen could cost less than £157, the same car insured by a resident of Birmingham's B9 postcode, Bordesley Green, would cost £1,101.62.

After Aberdeen, Plymouth is the second cheapest city in Britain to insure your car, followed by Bristol, Oxford and Edinburgh.

Birmingham's B9 district is followed in the list of shame by the B10 (Small Heath), B11 (Spark Hill, Tyseley), B66 (Smethwick, Bearwood, Sandwell), B8 (Washwood Heath, Ward End, Saltley) and B21 (Handsworth) postcodes. Of the top 100 most expensive postcodes, 22 are in Birmingham. Outside of Birmingham, the next most expensive location in 11th place was Liverpool L4, the Anfield, Kirkdale and Walton areas, while overall, Liverpool takes 17 of the top 100 places. East London is third, then Manchester fourth and North London fifth.

The insurance costs were based upon a 43 year old man, married with three children, who works as a retail account manager, owns his own home and parks his car on the street. The car given for the purposes of the survey was a BMW 318 2.0 litre diesel from 2012-2014, with manual transmission and 4 doors, costing £20,695 and covering about 6,000 miles annually.

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