PRICEY: Insurance much more expensive in the East
East London motorists are paying more than three times more for car insurance than their West London counterparts, it has been revealed.
Research by SmartWitness has discovered East London postcodes take four out of the five worst neighbourhoods for car premiums, whereas the five cheapest postcodes are all in South-West London.
The price of insuring a BMW 3 Series in East London is as much as £712.22 in Manor House, but only £220.91 in Putney.
Budget cars are similarly affected, with premiums for a Ford Fiesta costing only £176.08 in Putney but a huge £548.88 in Manor House.
SmartWitness also found that the East-Wide divide has become progressively worse over the past decade.
Simon Marsh, Managing Director of SmartWitness, said: “The growing divide between East and West London for motor insurance has been got much more pronounced in the past few years due to large number of bogus whiplash injury claims in East London.
“Many insurers estimate that increases in premiums of over £90 in 2013 alone in East London to cover the cost of third-party injury claims.
“In comparison, at the same time insurance costs in south west London have actually gone down in real terms.”
The East-West divide for motorists is clearly demonstrated by the top five most expensive and cheapest areas of London.
Manor House (£712.22), Wood Green (£657.98), Clapton (£650), Beckton (£644.41) and Forest Gate (£643.54) were the most expensive areas to insure a BMW 3 Series.
Out of the top ten worst postcodes, six were from East London; however, all five of the cheapest neighbourhoods to insure a Ford Fiesta had SW postcodes.
Cheapest were East Sheen (£176.08), followed by Chelsea (£202.91), South Wimbledon (£206.14), Belgravia (£210.95) and Richmond (£217.20).
Since the recession in 2009 there has been a huge increase in the number of third-party injury claims and, by 2012, 90% of these claims were for whiplash.
“We have seen a huge increase in the number of motorists in East London installing SmartWitness incident cameras to prevent bogus whiplash claims being made against them,” added Mr Marsh.
“Our cameras record the speed and force of the impact as well as HD video.
“The footage is admissible evidence in court, which means that your insurer can easily discover who is at fault, and ascertain whether a whiplash injury could be caused and check the number of personal injury claimants.
“Many insurers now offer lower premiums to motorists who install our cameras.”