CAR INSURANCE AND YOUR ADDRESS
An explanation of the car insurance term 'Risk Address' when applying for car insurance. Where you live affects how much you pay!
Risk Address
The proposer’s address (including and ultimately defined by the postal code) is necessary for communications and is also a cross-check on the district of use, although not always a reliable one. All car insurance forms will want to know the address at which the car is kept for the majority of the time. For Private Car Insurance this invariably means your home address.
All Car insurance companies use the Postcode theft rating tables produced for the ABI (Association of British Insurers) to rate your premiums. Every Postcode sector in the country is rated for it's car theft, therefore you wil only get cheap car insurance if you live in a low theft rated postcode sector.
Car Insurers generally assume that a vehicle is used mostly in the same areas that in which the proposer resides, but it is by no means uncommon for a person to commute by car from, say, outer Essex to Central London each day.
In such a case the proposer’s address would be no real guide as to the area in which the vehicle is mainly used and insurers might, in these circumstances, be denied an adequate premium.
All Car Insurance Companies now ask on the quotation proposal form how the car will be used - the use or usage of the car - which is then used in calculating the premium rates.
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