Greater Manchester has been named as the third most expensive place in the UK for car insurance, according to research from AA Insurance.
Great Manchester residents are estimated to be paying a fee of around £820 a year, which is the most expensive premium in the UK outside of London.
However, overall insurance premiums have fallen around £120 over the last year.
Janet Connor, managing director of AA Insurance, said: “There are already signs that some insurers are looking to put their prices up and I believe that this time next year, the AA’s index will be reflecting a rising trend.
“But I don’t expect to see the sharp premium inflation we saw between 2009 and 2011, when over a 12-month period premiums rose by more than 40%.”
AA insurance named London as the number one most expensive place in Britain for car insurance, followed closely by the postcode area of IG, which includes areas such Ilford, Chigwell and Woodford Green.
The cheapest area was the Isle of Man with the average quote being in the region of £231.
Whereas the average cost for a Londoner is around £922, almost four times the cost of the Isle of Man.
Ms Connor explained that there are many factors that can affect the price of your insurance premium and not just your postcode; the experience and age of the driver, the car model and where the car is normally kept.
“The premium reflects the likelihood of a claim being made and, in some urban areas, there is much greater risk of a collision taking place, or of car crimes such as theft of or from a vehicle, uninsured driving or attempts at ‘cash for crash’ fraud,” she said.
“Sadly, the criminality of some people has a detrimental effect of the premiums paid by honest motorists in such places.”
Additionally, the cost of both home and motor insurance has fallen by 6.8% in the last year according to separate figures released by the British Insurance Brokers’ Association (Biba).
Ms added: “But over the past year premiums have, on average, fallen in most areas of the UK and, encouragingly, some of the biggest falls have been in postcode areas that traditionally have paid the highest premiums.
“I hope that the measures being introduced by the Ministry of Justice to curb fraudulent injury claims, and continued work by the Motor Insurers’ Bureau and the police to reduce the number of uninsured drivers, will help to ensure premiums in such places are affordable.”
Image courtesy of Mikey, via Flickr, with thanks.