Why Does Where You Live Affect The Cost Of Your Car Insurance?

There are so many factors that affect how much you pay for your car insurance. For instance, whether you have made any claims on your car insurance policy in the last 5 years, the level of cover that you have, whether you have any points on your license due to the likes of being caught speeding, how many miles a year you drive and who is allowed to drive the vehicle.

car insurance premiums are affected by where you live as you may live in a location that is renowned for car thefts

If you live in an area that has high crime levels you may pay more for your car insurance

Another factor that has a bearing on your premiums that you pay for your car insurance is where you live. Your postcode is used for so many things – not just for helping the postman deliver your mail as speedily as possible.

So, why does where you live make a difference to your premiums? Well, the car insurance company will no doubt have their own internal statistics that show the percentage of claims that they receive from people living in a particular location. They will use this information as well as the other things mentioned above (plus some other factors as well) to calculate the risk to them and thus the premium they wish to charge you.

Surely this is only fair as why should someone living in an area where there are fewer claims being paid out by the insurer pay more than another motorist living in a street that is renowned for claims being submitted by residents. These claims could be due to the theft of cars and/or the number of accidents that take place.

In addition to their own internal statistics, an insurance company will also be aware of data produced by the likes of the police and the government about accidents and thefts throughout the UK. They will no doubt use this data to assess the likely risk to them.

Should you be considering moving home, you may wish to find out what the difference in car insurance premiums will be when comparing two or three different properties that you are considering moving to. After all, it will cost you nothing to find this out.

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