Connect with us

Finance

Postcode Lottery – The Impact of your Address on Insurance Costs

Postcode Lottery - The Impact of your Address on Insurance Costs
When people refer to the ‘Postcode Lottery’, they aren’t talking about a fun new weekly nationwide gambling craze, they’re talking about the effect that your postcode (i.e. where you live) has on the cost of insurance that providers will offer you.
Since all insurance is inherently based on risk, it makes sense that insurance companies will look at the area you live in and try to assess the risk of something happening to you that requires you to make a claim. Understandably, an area’s crime rate is the most important element of postcode pricing when it comes to insurance; the higher the crime rate, the more likely you’ll need to make a claim, hence the price of the quote rises accordingly.
However, different insurance providers use different formulae to determine their prices and their criteria changes regularly to reflect the changing state of different areas. This is why it’s known as the ‘Postcode Lottery’ as you can’t ever be entirely sure how much of an effect your postcode will have on your insurance premiums.

How it Works

Postcode Lottery - The Impact of your Address on Insurance Costs

When trying to determine postcode pricing, most insurance companies will consult figures from the various police forces across the country and the Insurance Fraud Bureau (IFB). As well as assessing crime rates, they will also take into account which areas pose the highest risk of fraudulent claims.
Currently, the IFB’s data shows that areas with a high level of fraudulent claims are invariably in large cities. Birmingham is the current UK top spot for insurance fraud issues, swiftly followed by Liverpool, Manchester, East London and Bradford. Consequently, drivers living in cities will usually have to contend with higher premiums than those living in the country.

How to Make Savings

If you happen to live in a high crime or fraud hot spot, then don’t despair, there are a number of things you can do to combat the increase in insurance premiums that your postcode carries.
Firstly, saving money on car insurance sometimes requires a little persistence. Don’t assume that just because one provider looks unfavourably at your postcode that all of them will. Some insurance companies change their assessment of some post codes very rapidly due to updated crime stats. So shop around and don’t just assume that simply renewing your quote is going to be the best deal that you can get.
In addition, there are some tricks and tips that you should follow regardless of where you live as they apply universally to all insurance providers.

  • Estimate your average mileage accurately; the lower it is, the cheaper the insurance will be.
  • Don’t risk hiking up the voluntary excess too high unless you are an exceptionally careful driver and are sure that you can afford it.
  • Avoid speeding. A single conviction will affect your insurance premium and multiple convictions can more than double it.
  • If you have access to a garage or driveway then park your car there as it is a majorly positive signal to insurance providers.

Continue Reading

Recent Posts

Home Improvement4 weeks ago

Mastering The Maintenance: Breaking Down The Basics Of Your Ducted Heating And Cooling System

Welcome, fellow home enthusiasts! Ever find yourself lost in the labyrinth of your ducted heating and cooling system? Have you...

Business1 month ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing1 month ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Business1 month ago

The Three Most Important Benefits You Should Offer To Your Employees

Offering your employees a range of benefits on top of regular salary increases will really help to show that you...

Business2 months ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy3 months ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing3 months ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General3 months ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business3 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business4 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business4 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech5 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO5 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General5 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement9 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Categories

Archives

Trending