Car Insurance Quote Too Expensive? It Might Be Because Of Where You Live
Posted by Credit-Counsellor.ca | Under Finance: GeneralThursdayJul 29, 2010
Many people in the UK feel that their car insurance premium is too expensive, and will spend hours shopping around trying to reduce the cost of their car insurance. What many people don’t come to realise though is that their postcode (i.e. where they’re living) could be making a big difference to their premium. Whether you’re after yearly cover or a one day insurance policy, where you live will make a huge different to your insurance quote.
Insurers will often use your postcode to help determine your risk level, and therefore how much to charge for your cover. If your house is in a high risk area, then it’s likely you’ll have to pay a higher price for your car insurance.
Most people don’t realise just how much of an impact where you live has on your premium, and you might well be shocked to find out how much of a difference your postcode is having. It might be worth you going and experimenting with this now, find a site online that allows you to get an instant car insurance quote, inputting the same details twice, changing only your postcode. You’ll find your insurance quote increases dramatically when trying to insure a vehicle in somewhere like London or Manchester for example.
Prices will go up like this because of higher a higher likelihood of crime in certain areas. People who live in these areas of the country are much more likely to claim on their policy, which is why the rate is higher. Manchester, London, Oldham, Hull and Doncaster are amongst the highest risk areas in the country, and are likely to see the highest insurance premiums.
If you happen to live in one of these ‘high risk’ areas, it might be worth seeing if you can keep your car parked at someone else’s address in order to lower your insurance premium. Although this won’t work for everyone, those that can keep their vehicle at a different address should see their yearly quote lowered.
If you’re planning on spending a short amount of time (a week, fortnight, etc) in a higher risk area and you will be taking your car, it might work out better to take out a temporary car insurance policy. You may think this is an extra long term expense, but if you do need to claim on your policy you’ll find that having a seperate short-term policy will mean your usual policies’ no-claim bonus will remain unaffected.
