Woodford Green and a large part of the Epping Forest district have the second highest car insurance premium in the UK after London, figures released by the AA show.
The IG postcode, which includes Ilford, Chigwell, Woodford Green, Buckhurst Hill, Loughton and Barking, is said to be affected by high levels of car crime and accidents, pushing insurance costs up.
It now costs an average of £922.44 to insure your car if you live in the postcode, an increase of 4.5 per cent in the last three months.
Managing director of AA Insurance, Janet Connor, said: "The premium reflects the likelihood of a claim being made and, in some urban areas, there is much greater risk of a collision taking place, or of car crimes such as theft of or from a vehicle, uninsured driving or attempts at 'cash for crash' fraud.”
"Sadly, the criminality of some people has a detrimental effect of the premiums paid by honest motorists in such places."