BBC News Online: Business

Cheapest place for car insurance

Small Heath, Birmingham. Residents pay the most for car insurance

According to the survey by the Automobile Association (AA), the difference between living in the cheapest and most expensive place is as much as 276%.

Car insurance premiums in central London accounted for eight of the top 10 most expensive postal areas.

Driving up costs

The cheapest place to buy car insurance was Douglas in the Isle of Man, where the cost of an annual premium was £225.

The most expensive place to insure a car was, at £622 a year, Small Heath, near Birmingham,

Overall, premiums have risen by £30 in the last year to £364, a rise of 9% on average.

While premiums for people living in towns tend to be higher, there are still large regional variations.

The cheapest central urban areas were Perth, Inverness , Exeter and Aberystwyth.

The most expensive cities are Birmingham, parts of London, followed by Liverpool, Manchester and Glasgow.

In London, Stoke Newington, was the most expensive place to insure a car at £607 a year.

The results were based on the cost of insuring a Ford Focus, and involved surveying costs for about 10,000 postal sectors.

People are advised to shop around for their insurance at renewal time.