No one chooses where they live based on car insurance quotes but, given the current cost-of-living crisis, it is worth knowing which areas have the cheapest quotes, especially with car cover prices set to rise by 14% this year, according to consultancy firm Oxbow Partners.

A report by Forbes Advisor reveals that Torridge, Devon, has the cheapest average rate of £519.48. The report uses the average of the three cheapest quotes from a test subject living at a randomised postcode in each borough. The test vehicle is set as a 2023-registered Ford Fiesta with the driver being a 33-year old-teacher with ten years of no claims.

Lincoln has the second cheapest average of £527.70. Drivers in South Holland, also in Lincolnshire, could achieve a rate of £540.03

The fourth cheapest area is Denbighshire in Wales with an average quote of £556.44. Richmondshire in North Yorkshire is fifth at £556.65.

Car insurance curse for Londoners

Unsurprisingly, the most expensive areas were all London boroughs with Haringey leading prices with an average of £2,197.03.

The second most expensive borough is Barnet with an average quote of £1,866.40 and third was Newham at £1,866.37.

The cheapest isn’t always the best

While cost is all-important, particularly at the moment, Kevin Pratt, car insurance spokesperson at Forbes Advisor, noted that price was not the only factor to consider when choosing car insurance.

He said: “It’s interesting to see how much prices for car insurance change throughout the UK. If plotted on a map, the areas that occupy the top 10 cheapest quotes list are widely spread across the country.

“On the other hand, all the local authorities where car insurance is most expensive are London boroughs, which underlines how expensive it is to live in the capital.

“Wherever you live, if you’re a driver, car insurance is a legal requirement. When considering your options, it’s important to remember that the cheapest premiums might not provide the level of cover that you need.

“There are other factors to consider beyond price, such as how an insurer treats its customers and handles claims. That’s why it’s always worth taking the time to consider which providers will offer you the best value cover.”