Liverpool drivers pay £325 more than average for car insurance

Premiums are more than one and a half times the national figure for Liverpool postcodes

Motorists in Liverpool are paying £325 more for their car insurance than the average driver, according to new figures.

The Association of British Insurers recently reported that premiums had fallen to a five-year low but analysis of insurance quotes from around the country has shown stark differences, with Liverpudlians among those paying the most.

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Lockdown and the associated drop in traffic levels in 2020 saw a reduction in insurance claims. Insurers have now passed some of the savings from that onto drivers, with the average UK premium now £430, the lowest since the start of 2016.

However, according to data gathered by Rivervale Leasing, the average cost of a fully comprehensive policy for drivers with a Liverpool postcode is £765 - more than one and three-quarter times the national average.

Only Londoners and motorists in Manchester pay more on average for their insurance, with drivers in the capital hit with an average bill of £827 and Mancunians paying £783.

Graphic: Mark Hall/JPI MediaGraphic: Mark Hall/JPI Media
Graphic: Mark Hall/JPI Media | JPI Media

As expected, major cities dominated the list of the most expensive locations for drivers, with Coventry, Wolverhampton and Birmingham among the other locations where insurance is up to £300 higher than average.

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At the opposite end of the scale, Bangor, in Wales, proved to be the cheapest postcode in the analysis, with average premiums at £276, just ahead of Bath (£295) and Carlisle (£296). Four Scottish cities - Aberdeen, Inverness, Edinburgh and Perth - also made it into the top 10 cheapest locations, with drivers there all paying less than £300 a year.

How to save money on your car insurance

While your postcode might mean you’re paying more than average for your insurance there are still ways to make sure you get the best deal possible.

Cut out the extras

Many insurers will try to add all sorts of extras onto your policy but these are rarely free and none is compulsory. Additional features such a windscreen cover, courtesy car provision, breakdown cover and legal services sound handy but all add to the cost of your policy.

Increase your excess

Increasing your voluntary excess is a quick and simple way to bring down your premium. Provided you don’t have to claim you’re quids in but remember, if you do make a claim you’ve got to be able to cover the cost of that higher excess.

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Think about your named drivers

Adding more drivers to your policy can work for or against you in keeping costs down. Younger, less experienced drivers will most probably push your premium up, as will those with high-risk jobs or motoring convictions. On the other hand, adding a more experienced, lower-risk person can actually reduce your premium.

Pay up front

Most insurers will allow you to pay for your cover on a monthly basis but will charge you more than if you pay in a lump sum. If you can, get the painful part out of the way in one go and you could save 10 per cent or more.

Think about your job

Some professions are considered higher risk than others by insurers. You can’t lie about what you do for a living but being smart about the description that best fits your job can make a big difference to your premium.

Avoid modifications

Car modification is hugely popular but any changes you make to your vehicle could push up your premium. Performance upgrades are the most obvious example but even cosmetic changes such as a body kit or bigger alloys could make it more attractive to thieves, pushing up the risk assessment.

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