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How you can save big on your car insurance, no matter where you live

A new study reveals the vast difference in prices for Australia drivers, which are determined by which city – and suburb – you live in.

Unsurprisingly, Sydney drivers are paying the highest car insurance premiums in the nation. But there are savings to be made.

Move house and your car insurance could go through the roof because pricing goes by postcode.

Insurance premiums vary widely depending on which city, and which suburb, you in. Source: 7 News
Insurance premiums vary widely depending on which city, and which suburb, you in. Source: 7 News

Where you live plays a huge part in determining the cost of your car insurance and that difference can be around $1,087 a year.

Financial group Mozo's research found the same driver on the same cover can pay up to 60 per cent more just because of location.

Victoria and New South Wales have the highest average premiums.

But depending on where you are located in the city can mean a difference of $1282, from the cheapest to the most expensive.

Car insurance could cost you more if you move. Source: AP
Car insurance could cost you more if you move. Source: AP

But depending on where you are located can mean a variance of $800-$900 in Western Australia, Queensland and South Australia and up to $1300 for NSW and Victoria’s cheapest and most expensive premiums.

“If that area has a lot of people in it who are higher than normal risk you could end up paying more for your insurance as well,” said Kristy Lamont, from Mozo.

How pricey depends on a suburb's security profile, as well as the age of cars, the age, gender and even marital status of its occupants.

But there are huge price differences between insurers so it's worth comparing.

Costs can go up depending from a postcode change alone. Source: 7 News
Costs can go up depending from a postcode change alone. Source: 7 News

“Bingle was found to offer the nation's cheapest car insurance,” Ms Lamont said.

But Bingle is entirely online and doesn't offer some policy features like your choice of repairer.

“Budget Direct, Suncorp, RAC, SGIO and SGIC offer the best value car insurance in Australia,” Ms Lamont said.