Vehicle insurance needed around posh city (9)
I believe the answer is:
vancouver
'city' is the definition.
(I know that Vancouver is a city)
'vehicle insurance needed around posh' is the wordplay.
'vehicle' becomes 'van' (type of vehicle).
'insurance' becomes 'cover' (I've seen this before).
'needed around' is an insertion indicator.
'posh' becomes 'u' (abbreviation for upper-class - opposite to non-U).
'cover' going around 'u' is 'couver'.
'van'+'couver'='VANCOUVER'
(Other definitions for vancouver that I've seen before include "Canadian city" , "Canadian Pacific port" , "Canada's chief port" , "City of British Columbia" , "English navigator?" .)