Exclusive

Car insurance costs hundreds of pounds more for drivers living in deprived areas

16 October 2024, 07:11 | Updated: 16 October 2024, 09:19

Car insurance costs hundreds of pounds more for drivers living in deprived areas

Aggie Chambré

By Aggie Chambré

Car insurance is costing hundreds of pounds more for drivers living in deprived areas, LBC can reveal.

Listen to this article

Loading audio...

Analysis for LBC reveals that residents in less well-off areas can pay almost a third more than neighbours in wealthier areas less than a mile away.

In one of ten examples shared with LBC, drivers in one of the most deprived areas of Manchester pay from £1,218 while those down the road receive quotes from £843. In a less deprived part of Newcastle residents are offered deals under £700 while just over a mile away in a more deprived district residents pay just over £800.

The Transport Secretary Louise Haigh told LBC that “some groups have been hit harder than others”. 

She added: “No matter your background or circumstance, this Government is determined to ensure drivers get a fair deal, this Government is determined to ensure drivers get a fair deal.”

In the last year car insurance costs in the UK have risen 12 times as fast as France, and about 5 times as fast as Spain and Italy. This, according to the Department for Transport, has been driven by damage from pothole-ridden roads, soaring inflation and rising car thefts, amongst other facts.

Car insurance is costing drivers in deprived areas more than in wealthier areas.
Car insurance is costing drivers in deprived areas more than in wealthier areas. Picture: Alamy

It is estimated that 1 million people cancelled their car insurance due to cost-of-living pressures in 2022.

While car insurance costs for UK customers rose on average by 25% from 2022 to 2023, average premiums rose by 6% in Italy, 5% in Spain and 2% in France in the same period.

In Germany, the biggest European car market, car premiums have risen by around 11 to 13% – a larger increase than in its European neighbours but still far short of the rises imposed on British drivers.

This analysis for LBC comes as the Government announces a new task force which will identify the factors behind rapidly rising premiums and will agree to solutions to keep costs under control.

This task force will include Transport Secretary, Louise Haigh, and Economic Secretary, Tulip Siddiq, will bring together industry groups and consumer champions such as the Association of British Insurers, Citizens Advice, Which? and Compare the Market, as well as insurance regulators.

Ms Haigh told LBC: “Car insurance is an essential for millions up and down the country. 

“It’s not just a legal requirement, but something that protects all of us on the road. 

“Yet, in recent years, millions of responsible drivers have seen a hike in premiums far outstripping rises seen in other countries.” 

She added: “Our new expert taskforce is a major step forward in delivering a fair deal for drivers.

"It will give this issue the attention it deserves – rooting out the factors driving up costs for industry, and ensuring drivers are able to hit the road.”

More Latest News

See more More Latest News

NHS hospitals and buildings are plagued by rats, cockroaches, silverfish and other pests, results from the latest staff survey have revealed.

Hospital of horrors: NHS 'plagued by rats and cockroaches' as well as 'sewage leaks and crumbling ceilings'

Sadiq Khan will get new powers to overrule councils that block pubs and clubs opening late

Boost for London's nightlife as Khan goes to war with local councils that block pubs and clubs opening late

Bruce Springsteen

Bruce Springsteen to put out seven 'lost' albums of unreleased songs

Val Kilmer & Tom Cruise in Top Gun

Tom Cruise breaks silence on 'dear friend' Val Kilmer's death with emotional tribute to Top Gun co-star

Virginia Giuffre

Woman driving Prince Andrew accuser Virginia Giuffre during crash that left her with 'four days to live' breaks silence

Prescot, Merseyside

Girl, 13, dies in horror Merseyside house fire as five children escape unharmed

File photo of a Harris hawk

Dive-bombing hawk that terrorised village with string of blood-soaked attacks finally caught by local hero

Exclusive
'Donald Trump has made Putin comfortable,' Mikhail Khodorkovsky has warned

'Trump has made Putin comfortable' despite massive Ukraine war losses, exiled former oligarch tells LBC

New images show the moment the two ships collided.

New images show moment of North Sea crash as investigation reveals neither ship had a 'dedicated lookout'

Washington, DC, USA. 15 Apr 2017. A balloon caricature of President Donald Trump appears at the Tax March protest near the U.S. Capitol.

Buy US chlorinated chicken in return for lower tariffs, Trump tells Britain

From jeans to jet fuel and firearms to whiskey: Britain unveils lengthy list of US items facing tariffs

From jeans to jet fuel and firearms to whisky: Britain unveils lengthy list of US items facing tariffs

Forensic investigators at Milton Keynes train station after a man was shot dead by armed police officers.

Knifeman shot dead by police in Milton Keynes after moving 'at speed' towards officers named for first time

The bodies of Andrew Searle and his wife Dawn were discovered by a neighbour.

British couple found dead in south of France home being ‘treated as murder-suicide’

Kerri Pegg, former governor of HMP Kirkham,

Prison governor denies relationship with drug boss 'Jesse Pinkman' after flip flops carrying his DNA found in her flat

Julie Goodyear as Bet Lynch. Her husband has now deleted a recent photograph of the actress which he shared in honour of her 83rd birthday on Wednesday

Julie Goodyear's husband removes rare photo of Coronation Street star after dementia diagnosis amid blacklash

The vehicle was later extinguished after the driver, covered in flames, emerged from the vehicle.

Amsterdam Dam Square car explosion sees driver engulfed in flames - just days after mass stabbing