WEST Wiltshire is a great place to keep your car insurance premiums low.

This part of Wiltshire is among the cheapest in Britain, according to the AA's latest records.

Where you live can be almost as important as a clean driving licence when you're trying to find the best insurance quote, because premiums vary according to your postcode.

The national average premium is now £364, with London topping the list at £480 and 'the Islands' that's the Isle of Man, Shetland, Orkney and Hebrides at the lowest, £231.

The very cheapest is Douglas on the Isle of Man, at £225.

But this region the South West enjoys the next lowest premiums, with an average of £294.

Though central London accounts for eight of the top 10 most expensive postal areas, Britain's costliest insurance area is Small Heath, just outside Birmingham.

Here, the average motorist pays a whacking £622 a year.

"Inner cities are a bigger risk to insurers," says AA insurance chief Kerry Richardson.

"Cars are more likely to be involved in accidents, simply because of density of traffic, and they have a greater chance of being stolen, broken into or vandalised."

Richardson points out that there are several ways to keep your premiums low, but they're not always attractive.

You can restrict the number of drivers on your policy, limit your annual mileage, or drive an older or smaller car.