A simples guide

How does my address affect my car insurance premium?

Moving house isn’t just about the exciting things like getting a new set of keys and choosing which bedroom’s going to be yours. You need to do all the boring stuff too, like find out when the bins go out and… notifying your car insurer. Because where you live plays an important role in determining how much your premiums are – keep reading to find out more.

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Why does my postcode affect my car insurance?

Your car insurance premium is based on how likely it is that you’ll make a claim. The greater the chance of you claiming – the more your insurance will cost. So your provider will take lots of factors into consideration when pricing up your policy, things like:

  • Your age – generally, the younger you are, the higher your insurance, that’s because younger drivers aren’t as experienced and statistics show that 40% of young drivers have crashed by the time they’re 23 – and so more likely to make a claim.
  • Your job – stereotyping can be harsh but some jobs are perceived as being riskier than others – so bad luck if you’re an estate agent because you’re one of the biggest claimers and all that travelling around showing off houses just added a bit more to your premium.
  • How you use your car – you might pay more if you use your car for commuting compared to if you just pootle around every now and again. That’s because driving in rush hour with all those other tired and stressed out drivers means an accident is more likely to happen.
  • Miles – the more miles you drive, the higher the risk of you having an accident one day.
  • Your car – generally the more expensive, powerful and desirable your car is, the higher your premium.
  • Where you live – generally you’ll pay more if you live somewhere built up where the risk of an accident is greater or where car crime is higher.

How do insurers rate different addresses?

There’s nothing insurance providers love more than risk assessment and they’ve done just that with the whole of the UK.

Your postcode is key when it comes to pricing up your car insurance, although you might think there wouldn’t be much difference between two parallel streets. But if one street was the subject of more accidents that the other or had a higher incidence of crime
– guess which address would cost you more to live at from an insurance perspective?

car insurance
cars on driveway

How important is where I store my car overnight?

If you’re able to tuck your car into a secure garage at night or on to a drive then that’s a bonus. Insurance providers like this because it means it’s less likely to be nicked or exposed to accidental damage from passing traffic. So if you are able to do this then make sure your insurer knows, because it could save you a bit of money off your premium.

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We’re not called comparethemarket.com for nothing – it’s what we do and we can bring you quotes from more than a hundred trusted insurance providers. Just answer a few questions (honestly) and we’ll take it from there – simples, right?

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