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How does my address affect my car insurance

How does my address affect my car insurance

Think the make and model of your car is the only reason your car insurance premiums are high? Think again because your address plays a big role when it comes to calculating your car insurance. Here's why...

Daniel Hutson
From the Motor team
minute read
posted 1 NOVEMBER 2019

Why does my postcode affect my car insurance?

This is because 90% of all car insurance claims occur within five miles of the driver's home. Insurance providers are aware of this statistic and, because of this, have done their research regarding general driving and claims behaviour in your area.

They look at factors like how many personal accident claims are made by drivers in the area, how many uninsured drivers may live there, how many fraudulent claims have been made, how many general claims have been made, and how much theft and vandalism tends to take place.

What areas are considered the highest risk?

Inner city Bradford, Oldham, inner city Manchester, Liverpool city centre and inner city Birmingham are the highest risk areas that could mean your insurance premiums are costly.

What areas are considered the lowest risk?

If you live in Redruth or Penzance (Cornwall) or East Inverness, Angusor Isle of Barra (Scotland), you'll likely enjoy less expensive car insurance as a result.

How can I reduce my car insurance premiums if I live in a high-risk area?

Parking your car off of the street overnight is a good way to increase the chances of enjoying a slightly lower car insurance premium if you live in a high-risk area. Insurance providers like this because it means your car is less likely to be stolen or exposed to accidental damage from passing traffic.

What else plays a part in the calculation of my premium?

While your address plays a huge role, other factors are used to calculate your premium including:

  • 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 are more likely to make a claim
  • your job – stereotyping can be harsh, but some jobs are perceived as being riskier than others
  • 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
  • annual mileage – the more miles you drive, the higher the risk of you having an accident
  • The make and model of your car – the car you drive and the insurance group that the car is in has a big effect on how much you'll pay. Generally, the more expensive, powerful and desirable your car is, the higher your premium

How can I get a good deal on my car insurance?

We're not called Compare the Market for nothing – it's what we do – and we could bring you quotes from a variety of trusted insurance providers. Just answer a few questions (honestly) and we'll take it from there. Why not start comparing quotes now?

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