Does your postcode affect your insurance?

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Whether you’re a taxi driver, courier, driving instructor, or motor trader, the law requires you to have insurance.

Depending on your experience, past claims, age, sex, and driving history, your insurance premium will vary. However, most people are not aware that your postcode is also accounted for in the insurance process, and can have an affect on how much will you be required to pay for your insurance.

How does this work?

Essentially, if you live in a large city or urban area, your insurance premium is likely to be higher than if you lived in the countryside or in suburbia. This is because the larger populations of cities means it is statistically more likely that you will be involved in an accident and therefore will make a claim. As a motor trader, then, or a taxi driver, you are also likely to have more customers should your business operate in a city, and more customers means its more likely that something will go wrong and you’ll have to make a claim. To pre-empt this, insurance companies set premiums higher for those that live in cities.

If you live in the city, what can you do?

When it comes down to it, there isn’t much you can do if you live in a city, except move to the countryside! However, there are other steps that can you take to lower your costs for motor trade insurance or taxi driver insurance, like shopping around and looking for the best deal, or improving the security around your business.