Insurance news
Inner city drivers 'paying higher car insurance premiums'
31 July, 2007
Motorists who live in inner city areas could be paying a higher car insurance premium than their suburban counterparts, according to an industry group
The AA stated that financial providers considered where a driver lives when they are calculating a car insurance quote, as well as other factors such as a person's age and gender.
Ian Crowder, spokesperson for the AA, said: "Postcodes certainly make a difference to premium costs. If you're in an inner city area, you could pay three times the premium of somebody on the outskirts of town."
He said that drivers in suburban areas tend to park their cars in a secured garage, whereas people in inner cities often left their vehicles parked on the road.
This would have the consequence of making inner city drivers more likely to experience car crime or accidental damage, two factors behind possible car insurance claims.
According to official figures, vehicle crime has dropped by more than half since 1997.
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