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Impact of address on car insurance premium

Find out why where you live can have an impact on your car insurance.

Car insurance premiums are a calculation of risk involving a number of factors. These can range from the obvious such as your age, car make and model, and your driving history to the slightly more obtuse such as your line of work and where you live. Essentially anything that affects the odds of you making a claim will impact your premium. Find out more about how your address may affect your car insurance premium.

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Name Product Courtesy car cover New for old car replacement Drive abroad in EU? Personal accident cover Multi-car discount Policy options
Up to 90 days
Up to £5,000 personal accident cover or up to £7,500 for AA members.
N/A
New customers get AA Roadside Assistance for a year from just £15, plus discounts on breakdown cover upgrades.
Up to 90 days
Up to £5,000 personal injury cover
Insure more than one vehicle under the one policy. Every car added will earn its own discount.
Black Box Insurance, Car Sharing Insurance, GAP Insurance
Quotes starting from £248 per year. No claims & MultiCar discounts on offer.
Up to 180 days
Yes
N/A
Motor Legal Protection, Key Protection, Excess Protection
No upper age limit
Up to 90 days
Cover you or your partner up to the benefit amount outlined in your insurance agreement
If you've got more than one car to insure at the same address, you could save yourself some money on every additional policy
Black box insurance, Young driver insurance
  • Replacement, upgrade or the money in case of write off
  • No-claims discount protected if car is vandalised or hit by an uninsured driver
  • (terms apply)
Up to 90 days
Yes
Yes
Young driver insurance
Optional
You or your partner are covered up to the amount in your insurance agreement.
If you've got more than one car to insure at the same address, you could save yourself some money on every additional policy (T&Cs apply)
Black box insurance
  • Guaranteed hire car as standard
  • Taxi to get you to your destination if you've been involved in a crash (T&Cs apply)
  • No-claims discount protection (Terms apply)
Up to 90 days
£5,000 of personal injury cover for you and your spouse
Yes
Young and first time drivers insurance
Up to 90 days
You or your partner are covered up to £2,000 per person.
N/A
Short term car insurance, Young driver insurance
20% off MOT costs and 10% off servicing with comprehensive and third party policies.
Up to 90 days
Optional extra
If you've got more than one car to insure at the same address, you could save 10% on your cover
Multi-car, temporary insurance
Optional
Personal accident cover up to £5000.
N/A
Learner driver insurance, Young driver insurance, New driver insurance, Student insurance, First time drivers insurance
Up to £200 cover if handbag is stolen child seat cover.
No
Cover up to £10,000 per accidentand £2,500 per person.
N/A
Learner driver insurance
Insurance for young and learner drivers ages 17 to 25. Discounts up to 21% for good driving.
Up to 90 days
Get up to £10,000 cover per accident.
N/A
M&S Bank cardholder's save up to 15% when taking out a new policy or renewing existing insurance.
Up to 93 days with a foreign use extension
-
Up to 15% off certain additional car insurance policies
Young driver insurance
Up to 60 days
Cover for passenger injury.
N/A
Free breakdown cover for eligible new customers and 3 year guarantee on repairs carried out by approved repairers.
Up to 90 days
Optional extra
Get 10% off when you insure additional cars in your household
Multi-car, temporary insurance

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Why does my address affect my car insurance?

Though not obvious at first, where you live has a major impact on your car insurance rates.

Urban areas are more densely populated than rural ones, with busier roads, more car accidents overall and a generally higher likelihood of making claims of any kind. This increases premiums in cities.

However, living in rural areas means you typically need to drive longer distances on every commute, the roads can be in worse condition and you may be more likely to lose a car to bushfires or other hazards than someone living in the city.

In addition, statistically, 90% of all car accidents occur within miles of the driver’s home and insurance providers know this.

How does my address affect my car insurance?

Your address is used to apply very specific loadings based on location, and risk factors vary between neighbourhoods the same way they can vary between states. This is based on the odds of making a claim, and might be affected by countless factors such as how narrow or wide your road is, whether it turns onto an unusually dangerous intersection and many others.

  • Where you park. You can pay less for car insurance if you park in an enclosed garage or carport overnight, instead of on the street. Therefore, addresses without a garage have higher car insurance prices.
  • Weather. Rain, snow, fog and other bad weather can cause car accidents, so areas with frequent poor weather can have higher prices.
  • Crime. If your policy includes cover for theft, the crime rate in your neighbourhood will likely impact your premiums.
  • Population density. The more crowded your area, and the more cars on the road, the higher the prices.
  • Road maintenance. Poor road conditions are responsible for many accidents, so having better maintained roads in your area can lower premiums.

Steps to reduce costs

The golden rule of car insurance prices is that your odds of making a claim determine your premiums. Fortunately, you don’t need to move house to reduce location-dependent factors. Instead, try finding a policy that matches your situation and needs.

Choosing the level of cover

There are three different types of car insurance to choose from. The more at-risk your area is for certain hazards, the more important it is to get covered against it, but it will typically cost more.

    • Comprehensive. The highest level of cover available. The only policy that typically includes effective cover for weather damage, which means it may be disproportionately more expensive, but also important, in locations that are prone to extreme weather. Parking in a garage or under cover can help lower the cost of comprehensive cover.
    • Third party with fire and theft. A liability policy with cover for fire and theft. Unlike third party only policies, locations at higher risk of car theft will attract higher prices. Car security systems, such as immobilisers, alarms or VIN etching, can help you keep costs down.
    • Third party only. The most affordable type of policy. This policy generally comes with little or no cover for damage to your own car. If you live in a high-risk, high-premium location, then this policy type will be disproportionately more expensive, but may be missing the type of cover you need.

There are many other factors which affect car insurance prices besides location. It can be worth looking over them for other ways to cut your car insurance premiums. Once you’ve done that, getting low prices is largely about comparing policies side by side.

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Frequently asked questions


*Disclaimer: Please take reasonable care to answer all the questions honestly and to the best of your knowledge. If you don’t answer the questions correctly, your policy may be cancelled, or your claim rejected or not fully paid.

The offers compared on this page are chosen from a range of products finder.com has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms “best”, “top”, “cheap”, including variations, are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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