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How Does Location Affect Your Car Insurance Premiums?

The very nature of the insurance industry is risk taking. There are a variety of different things that have to be taken into consideration when car insurance companies set policy premiums. To deciding factors include where a policyholder lives and how many claims have been made by people living in that neighbourhood.

Therefore, do not be surprised that your particular car insurance premiums might be either higher or lower than a friend or relative who lives in a different part of the country or even a different neighbourhood. For example, a recent study indicates that the highest car insurance premiums in the UK are in East London while the lowest are in Dundee.

Although typically a policy holder living in a rural area should experience a much lower premium than a counterpart living in a town or city, there are other factors that are insurance companies take into consideration when setting a premium. An example would be if that rural area has a higher incidence for accident settlements. This would compel the entire car insurance industry to set higher premiums for that particular geographic area.

A policyholder’s purchase of a particular car also has a determining factor on policy premiums. Therefore, purchase of an expensive sports car garaged in the country would carry a higher premium than an average family vehicle would in a large town or city. Your living location, along with the statistical data for accident claims within that location, will vary from place to place even while ensuring the same vehicle.
Car insurance premiums in higher risk areas also vary somewhat. If you live in a low risk area, expect to realise a greater reduction in premiums paid when insuring the same make and model vehicle.

Car insurance quotes will continue to rise in high risk areas like East London and Manchester. However, areas like Dundee and Aberdeen continue to be at the bottom of cost list when it comes to insuring the same vehicle with a like for like policy from the same insurance company.

The post code lottery has infuriated many people, however there are few insurers who do not use post codes to determine high risk areas. One of the best ways to be offered low car insurance quotes is to rely on your no claims bonus as these can slash premiums by half.

Making no claims may be difficult in high risk theft and damage areas, taking extra precautions such as keeping your car in a securely locked garage rather then park at the kerbside will help lower premiums, along with approved Thatcham security devices.

Taking a sensible approach of not leaving valuables within sight of opportunist thieves may not help to lower your car insurance quotes but it may reduce your need to make a claim. Other sensible precautions include not leaving your car running to defrost or become warmer and walking away from it! There are a surprising number of people who return to find their car has simply been driven away! In some cases insurances companies may not even pay out on a claim if it is deemed that you did not take sufficient care of your vehicle!

If you’re looking for more information regarding car insurance quotes visit Swinton.