Read MoneySuperMarket’s short guide and learn all you need to know about how your postcode can impact the cost of your car insurance. Why does my postcode affect the cost of car insurance? A car insurance postcode checker calculates your premiums based on your risk factor. In other words, how likely you are to make a claim on the policy you take out. Insurers will consider a number of things when deciding this, one of which is your location.
What is a car insurance postcode checker and how does it work?
A car insurance postcode checker calculates your premiums based on your risk factor. In other words, how likely you are to make a claim on the policy you take out. Insurers will consider a number of things when deciding this, one of which is your location. This is because different parts of the UK have different risk factors, which are based on:
Is your postcode a lower risk for car insurance?
Based on these statistics, it’s easy to understand why a postcode in a rural, low-population area is considered a lower risk than an urban or inner city postcode. Our experts have put together the cheapest average premiums based on postcodes, as well as the cheapest average car insurance by region within the UK.
What is the risk of a car insurance claim?
Car insurance is also based on the risk of you making a claim. Underwriters will study the statistics in your local area to work out how much of a risk your postcode is. This includes information on: Number of claims in your area (including fraudulent claims) Road systems that pose a higher risk, such as junctions, roundabouts and cycle lanes.