Connect with us


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

Travel1 month ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General1 month ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle2 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos2 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business4 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle5 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing5 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Business6 months ago

Avoiding the Wrong Kind of Growth

Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...

Business6 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...

Tech8 months ago

What Is The Difference Between Cyber Attacks and Cyber Threats?

If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...

Marketing8 months ago

3 Types of Marketing Every Small Construction Business Should Do

Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...

Business9 months ago

How Relevant Life Insurance Plans Can Future-Proof Your Business

Last year, UK inflation reached the highest level that it had been for decades. The markets became unsteady and nervous...

Autos9 months ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education9 months ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement9 months ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...