| |
Insurers partly catalogue risk
by postcode so if you live in a city or high crime area you will pay
more. The postcode categorization is arbitrary and sometimes unfair
because a few yards and a different postcode may make a big difference.
Factors that may be considered to influence geographic pricing may
include, but are not limited to the density of the local population,
the distance you are from the local authorities such as police stations,
hospitals and the fire brigade. Even something as simple as how far
the local schools are could be factored in to complex formulas used
in determining factors affecting your premiums for a specified area.
Why schools? My theory is that the more distance parents need to travel
to and from schools, the higher the chances of claims against insurers.
vandalism may be higher in areas where police stations are less accessible
as would be the chances of drink driving when taxi firms are spread
thin. The levels of crime, vandalism and even drink driving arrests
in your post code are well documented by the authorities and will
almost certainly be a factor in how the price of motor insurance will
be effected in various areas of the UK.
This is only a theory and purely speculative, but I would speculate that levels of unemployment in certain
districts of the UK may affect the cost of your insurance premiums in general.
Although most of the information on this page is fairly well documented
on most web sites, the only purpose of this article is to demonstrate
various possible factors which could be a part of complex algorithms
that the insurance companies use to come up with their prices. |
|
