London pays big car insurance premium

Motorists living in London pay 27% more than the national average for car insurance, research showed today.

High crime rates and the sheer volume of traffic have pushed up premiums in the capital to an average of £563, 27% higher than the average of £442 for Britain as a whole.

The North West was the second most expensive region, with motorists paying out about £541 in motor insurance premiums each year, according to a survey by Tesco Personal Finance.

At the other end of the scale, East Anglia is the cheapest place to insure a car, with annual premiums costing about £329 - 25% cheaper than the national average.

The cost of cover is well below the UK average in Scotland at £335, and in Wales and the South West at £365 and £368 respectively.

The research also found that women can get cheaper insurance than men, with female motorists paying an average of 10% less than male drivers.

Tesco compared the cost of premiums for 2,000 cars and drivers with 33 leading insurers.

Allan Burns, of Tesco Car Insurance, said the car insurance market was becoming increasingly competitive.

Motorists in London could save an average of £214 in London by shopping around, with the potential savings even higher in the North West at £321.