insurance and your postcode

[burnz]

well after moving to the gosford postcode, i decided to change both the cars to the new area.
full comp on the commo was around $1100 PA now $320, cant complain.
and very much the same for wife hyundia from $700 down to $290, full comp as well'

just checked the green slip (CTP) 310~320 respectivly.

should ppl be penalised because of their postcode??

 

[GetToDaChopa]

Thats like Postisism (like racism) Why should i pay more if i live there.

 

[nemesis_adrasteia]

If you live in an area where you are in more risk of having your car stolen/damaged, you pay more makes sense to me

 

[GetToDaChopa]

Ok i didn't think of that, good point ^^^

 

[burnz]

If you live in an area where you are in more risk of having your car stolen/damaged, you pay more makes sense to me

even with car alarms they sometimes not offer a discount, but newer cars with deadlocking.
imobilisers and sat tracking, its still cheaper on postcode then all the gadgets.

 

[minux]

burnz, the postcode i think is more based on social status than crime rates. If i insured my car at my brothers address it comes down by $210 a year. Now I know for a fact the crime rates for stolen/damaged cars are much higher in this part of Geelong. Yet because we live in an area with high house values, yet to hear of a car stolen/damaged we have to pay more.

Its a joke really, they just make money by charging more to people with more money as far as im concerned.

 

[Grennan]

Well see I kinda agree with minux, but I think nemesis's post makes sense...if you get my drift.

Here in Victoria, Frankston is known as a pretty dodgy suburb, yet insurance prices dont reflect that. Out of interest when I was looking at cars I checked different suburbs and it wasnt all that different to where i live which is a very quiet suburb, with quite large housing prices.

You would assume it would work on the way Nemesis described, by logic youd think a known high crime "high hoon" area would have a much larger insurance cost.

 

[excalibur]

I know in WA the worse the crime rate in the area the more u pay for insurance

to me that makes perfect sense!!!

 

[1991_Vn2nV]

burnz, the postcode i think is more based on social status than crime rates. If i insured my car at my brothers address it comes down by $210 a year. Now I know for a fact the crime rates for stolen/damaged cars are much higher in this part of Geelong. Yet because we live in an area with high house values, yet to hear of a car stolen/damaged we have to pay more.

Its a joke really, they just make money by charging more to people with more money as far as im concerned.

My auntie works for Allianz, when I queried about it she said it has nothing to do with socio-economic status or crim rates. It purely comes down to the number of insurance claims made by residents in that area. You may think that would correlate with crime rates and socio-economic status, but often it does the opposite.

Its confusing, but high crime rates normally have a positive correlation with lower socio-economic status. Yet insurance claim rates tend to correlate positively with higher socio-economic status. Why? Fewer people have full comprehensive insurance in low socio-economic suburbs and those that do aren't going to pay a $700 excess to fix a dented panel on a VN Commodore. However more people in higher socio-economic status suburbs have full comprehensive insurance, and are more likely to pay an excess to fix damage to a premium vehicle. People only pay the excess and make the claim when the damage or repair costs to the vehicle outweigh the size of the excess.

Hopefully that makes sense. Obviously that is just in general, it doesn't mean higher socio-economic status always leads to higher claim rates. At the end of the day, it comes down to the particular claim rates for that postcode and im sure there are many other variables that would effect that. Im also not positive thats the way every insurance company works their premiums according to postcode (some may indeed be socio-economic status or crime rates) but this is apparently how it works for Allianz.

 

[greenfoam]

Insurance must be cheap in Mount Gambier I think 90% of VN's there have a bashed in 1/4 panel or two