How where you park affects your car insurance premiums

Almost everything about your car and its usage affects your car insurance premiums. This can include anything from the distance you drive each year, to whether or not you have a bespoke paint job. Where you park it is just another factor to add to the long list of things that car insurance underwriters consider when deciding how much to charge you. Here’s why, and what difference it can make.

What parking options can I choose from when I apply for insurance?

All insurers will ask where you usually park your car as part of the process to get a quote. We’ve summarised the typical options below. The precise list will vary by insurer, and may be different for where you park your car during the day vs overnight.

• Private driveway. This is pretty self-explanatory, though there may be a caveat that it should be the driveway of the policy-holder’s home.
• Street or road near home. This is any road parking where a permit isn’t required, close to where you live.
• Street or road away from home. This option usually crops up if you park your car away from home during the day.
• Residential parking. Parking that’s been designated for residents to use by the local council. It usually requires a parking permit.
• Garage. Many insurers require that garages are securely locked.
• Car port. A car port has a roof to protect your car from the elements, but usually few or no walls.
• Car park. Usually applies to a car park without security, whether you paid or not, and whether it’s open or covered. NCP car parks, for example.
• Secure car park or compound. Secure car parks are usually fenced all the way around and accessed by a controlled gate using a key or code.
• Office or factory car park. If your workplace has a car park and you park here during the daytime, this is the option to select.

Does it matter if I park in different places overnight and during the day?

It can do, yes. Insurers and price comparison sites will ask whether you park your car in the same place overnight and during the day. If you park near home overnight, but typically park near your place of work during the day, you’ll need to provide both locations.

You’ll need to give the answer that applies most of the time. So if you park near your workplace during the daytime Monday to Friday, and park near home during the daytime at the weekend, you’ll need to choose the option that applies Monday to Friday (as that’s “most of the time”).

What if my parking location varies day to day?

It’s the type and rough location of where you park “most of the time” that matters, rather than the specific spot. So, if you don’t have a dedicated parking spot and need to park wherever there’s a space on the nearby streets, you’re still usually parking on a street or road near home. Or if, for example, you usually park in a residential car park, but occasionally it’s full and you have to park on the street, you should be fine to put “residential parking” as this is where you park most of the time.

If, however, it’s more variable than that, and it’s not possible to answer where you park most of the time, speak to your insurer about how to answer. This might apply, for example, if you travel for work and have to park in a different daytime location every day.

How much does where I park affect my premium?

When setting premiums, insurers will review data that indicates your likelihood of claiming, including the history of all claims made in the areas where you park and drive. This means that the difference in your premiums based on where you park will vary from area to area. In some areas it will make very little difference. But if, for example, an insurer has evidence that drivers that park on the road in a particular postcode are far more likely to make a claim than those that park on a driveway, you could see much bigger differences.

Of course, we often don’t have a choice about where we park. But if you do, it could be worth tweaking your answers to see how much difference it makes to your quotes. It’s important that whatever option you state, you do actually park in that location most of the time. If you don’t, and the insurer finds out when you make a claim, it could invalidate your insurance.

To give you an idea of how much impact different parking options can have, we’ve used a price comparison site to run a few quotes for a 32-year-old teacher, Holly, who lives in Berkshire and drives a Vauxhall Corsa.

* In this scenario, Holly has selected that she uses her car for ‘social and commuting’, as she obviously drives to work. For other scenarios, she has selected ‘social use’ only. Prices gathered in March 2024.

What are the best and worst places to park my car for car insurance?

As the scenario above illustrates, where you park your car doesn’t always make a huge amount of difference to your car insurance premiums. For Holly, when parking in the same location day and night, there was only a few pence difference in the very cheapest quotes. And, contrary to what you might expect, parking in her school’s car park during the day (and adding commuting to her driving habits) actually decreased the cheapest quote by around £14.

When we took the average of the 5 cheapest quotes for each option, there was a more logical pattern. In this case, parking in a garage offered the cheapest quotes (on average). Parking on the driveway, on the road, and in a different location during the daytime each added a few quid to the average premium.

As a rule of thumb, parking on the street tends to incur higher premiums. That’s because cars are more at risk of scrapes from passing traffic, plus they may be more vulnerable to opportunistic thieves or vandals.

The best place to park is more up for debate. You might assume that insurers would always prefer a locked garage. But, in practice, the chance of you scratching or denting your car driving in and out of a tight garage might outweigh the security benefits for some insurers, particularly if you live in a low crime area. So if you have the choice of parking in a garage or on the driveway, it’s worth checking both options when getting quotes.

What else can I do to keep my car secure?

There are a few things you can do to keep your car secure. Some can save you money on your car insurance premiums. Others won’t immediately reduce your premiums, but could reduce the risk of you needing to make a claim. This will help avoid the need to pay an excess, and will also retain your no-claims discount, which will keep costs down in the long term.

• If you have an older car, consider adding an alarm, tracker, and immobiliser. Most modern cars come with such security measures built in. If your car is older and doesn’t have them, installing them could reduce your premiums enough, over time, to justify the up-front costs.
• If you park on your driveway, installing motion sensor lights and/or CCTV could act as a deterrent to would-be thieves.
• If you need to park on the road, park under street lights if you can. Dark areas can be appealing to criminals as their nefarious activities are less likely to be spotted.
• Don’t leave your car keys visible through a window in your house, or near your front door where a thief might be able to hook them through the letter box.

How can I save money on my car insurance?

You don’t always have a choice of where you park, but there are other ways to keep the cost of car insurance to a minimum.

• Pay annually rather than monthly if you can. While paying monthly can spread the load, you’ll incur interest that will end up costing you more overall.
• Increase your excess. This is the amount you need to pay towards any claim. Opting for a higher voluntary excess can cut your premium. Just don’t set it so high that you can’t afford to pay it if you need to claim.
• Add an experienced driver. If you’re a young, inexperienced driver in particular, adding a lower-risk, experienced named driver to your policy could lower your premiums.
• Build up your no-claims bonus. Every year that you drive safely and avoid needing to claim will increase the no-claims discount on the following year’s premiums.
• Avoid cosmetic modifications. While adding an alarm or immobiliser could reduce premiums, fancy paintwork or tinted windows are likely to do the opposite.
• Consider “black box” insurance. This uses a small device – a “black box” – installed in your car to track your driving habits. Careful driving is rewarded with lower premiums.
• Compare prices annually. Always shop around each year rather than just renewing with the same insurer, especially if you’ve been through any big life changes such as getting married or moving house. You can also use comparison quotes to haggle with your existing insurer.

Bottom line

Whether where you park affects your car insurance premiums, and by how much, will depend on the area you live in and, potentially, the specific car you drive. Not everyone has a choice of where to park. But if you do, it’s worth running quotes for each option, to see if you could save a bit of money. And remember that different insurers may have different ideas of where the “best” place to park is, so it’s always worth comparing quotes to find the best deal for your circumstances.

Frequently asked questions

• Do I need car insurance if I leave my car parked and don't drive it?

  It depends where you park. If you park on a public road, whether it’s in residential parking or not, or in a public car park, then you still legally need car insurance. If your car is parked on private property – such as a driveway or garage – then you may be able to get away without insurance. You’ll need to officially declare your car off the road using the SORN process, though. And you mustn’t move it off your private property (even to temporarily move it out of the way for a skip, for example).

• Do I need to tell my insurer if my parking habits change?

  Yes. You need to tell your insurer about any changes that could affect your risk levels. This includes where you park. So if, for example, another member of your household moves out, making space on the driveway for your car (or vice versa), then you must tell your insurer. If you don’t, it could invalidate your policy and leave you unable to claim. There may be a small change fee, and your overall premium may be adjusted.

• Will my insurer be able to tell where I park?

  If you have a telematics policy, then the black box fitted in your car will pinpoint to the insurer where you park. And even if you don’t have a black box, there are tactics an insurer can use to check if you’ve been honest. If you say you have a driveway, but live in an area where most people park on the street, your insurer might use Google Street View to check if your property actually has a driveway, for example. Even if they don’t check when you take out a policy, they may investigate further if you need to make a claim. If, for example, you state you park in a garage, but then make a claim for your car being scraped by another vehicle while parked overnight, your insurer might question where you really usually park at night time. In short, honesty is the best policy.

Written by

Ceri Stanaway

Writer

Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio