Motor insurance news
03/08/2007

Post code unfortunates missing out on cheap car insurance

Welsh motorists are losing out on cheap car insurance thanks to the "post code lottery" which plays a part in defining how much a driver's premium is going to be.

It has been noted that car insurance quotes can differ by hundreds of pounds simply based on the fact that a house is in one post code area rather than another.

A test set of motor insurance quotes were carried out to show the problem.

The research showed that a motorist lives in Hendy, in Carmarthenshire with an SA4 postcode and who drives a 2005 Vauxhall Astra will pay £609 for their car insurance.

However, a motorist with identical circumstances but who lives in a village just one mile away that falls into the SA14 postcode, would pay exactly £100 less, with their premium standing at £509.

A spokesperson for WhatCar? magazine explained: "Quotations are worked out according to four main criteria: what the car is, who you are, what you use it for, and where you live. The post code is the system they use for correlating this data.

"You could live in a remote village, but if you share a post code with a town you will get a skewed result."

However, a spokesperson for the Association of British Insurers said that shopping around was more important than post codes when it comes to finding a cheap car insurance deal.

"If people think their premium is higher than it should be, they should talk to their individual companies and see what can be done," he advised.

 

 

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