How the Southwest of England Became the Cheapest Area for Car Insurance

Insurance premiums are often quite difficult to fathom. A whole slew of different factors are plugged into the calculation, all of which, statistically speaking, have an impact on how much risk a given motorist represents.

If you’re a young male who has only recently passed the test, and you’re driving a fast car that’s likely to crash and difficult to repair or replace, then you stand to pay a lot. If you have forty years of no-claims behind you, and you’re driving an inexpensive car to the shops every fortnight, then you can expect to pay much less.

One of the trickiest factors to weigh is the area you’re living and driving in. For a range of reasons, this matters to insurers. In the UK, the Southwest of England has a special reputation for being cheap. But exactly why is this?

Low Crime Rates

Generally speaking, crime is less prevalent in the Southwest than it is elsewhere. Given this, it’s less likely that your vehicle will be stolen or vandalised. Less risk for the insurer is reflected in the premium charged.

Rural and Sparsely Populated Areas

On a related note, the Southwest is much less densely populated. While there are a few country roads that prompt reckless driving behaviour in a minority, the general picture here is one of fewer accidents. On top of that, we should consider that congestion naturally accelerates wear and tear on a vehicle. If you’re stopping and starting in traffic, then you’ll need to visit the mechanic more often. That means more expense for the insurer and for you.

Accident Statistics

We might also look directly at the accident statistics themselves. In the Southwest, you’re substantially less likely to be involved in one.

Motorists could take advantage of these cheaper prices by enhancing their policy on their vehicle by opting for Guaranteed Asset Protection, or GAP insurance. What is GAP insurance? It’s the kind of insurance that will reimburse you for the cost of the car at the point of sale, rather than its hypothetical value at the point of the claim. This means you’re protected against going into negative equity in the event of a write-off.

Regional Factors and Demographics

There are several other factors worth mentioning. First is the weather in the South West. You’re less likely to run up against extreme snow and rain in this part of the country than you are in, say, Scotland. This means accidents are less frequent, and freeze-thaw-related mechanical stress is less of a problem.

Demographics also play a role. The population in the South West is a little bit older than it is elsewhere. South Hams, East Devon, Dorset and New Forest are among the eleven fastest aging local authority districts in the country. That means more experienced drivers and less risk for insurers.