AA: Inner city car owners could pay treble insurance premiums

Car owners in inner city areas are paying up to three times as much for their car insurance as customers in ‘leafy’ suburbs, according to an industry body.

This is because post codes are a key factor in determining the price of a car insurance premium, so people who own exactly the same car but live in different areas will pay different prices for their premium, the AA explained.

The company added that there are “lots of factors” which affect the price of a car insurance premium, such as age and sex.

“If you’re a man having just passed your driving test you present the highest possible risk to an insurer regardless of the type of car that you drive,” said a spokesman.

“A young woman who has just passed her test will probably pay half the insurance premium of that of a young man who has just passed his test,” he added.

Home Office statistics show that young men are overwhelmingly more likely to become involved in a fatal road accident than any other section of the road-using demographic.

© Adfero Ltd

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