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 will be compared to elderly drivers. 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.