The cost of insuring your car in the UK can vary by up to £330 depending on where you live, research from the AA revealed today.

Overall, the average cost of insuring a family car came has fallen by £4 this year to £360. However, according to the results of a survey by the AA, the UK's biggest car insurer, the price varies widely across the country, ranging from a low of £235 in the Isle of Man up to £567 in parts of Manchester.

The AA survey, which was based on the cost of insuring an average couple with clean licences driving a mid-range Ford Focus, pinpointed three places in Greater Manchester - Wythenshawe, Prestwich and Middleton - as the most expensive places to live if you want to insure a vehicle. Chelsea (£564) and Finchley (£563) in London and Liverpool city centre (£560) were next on the list. The Isle of Man came out has the cheapest premiums in the UK, but Brora in the Scottish Highlands (£261) and Portsmouth (£262) were also very good bets.

The theme is clear: generally, living out of town will save you money on your car insurance. Andrew Briscoe, the managing director of AA Insurance Services, explains why: "There is a close link between car crime and the cost of cover. Five of the 10 most expensive postcode districts have vehicle theft levels three times the UK average. However, cars in cities are also more likely to be involved in accidents, simply because of the density of traffic. Urban-based cars also have a greater chance of being broken into or vandalised."

But what if you want to save money on your insurance and live in the city? "Motorists can reduce their costs by up to a third by simply shopping around," says Andrew Briscoe. "A good broker will check the market for a more competitive quote and offer alternatives at renewal time. You may also consider restricting the drivers on your policy, driving an older or smaller car, opting for a larger excess, or fitting better security."