Car Insurance... your address matters
Discussion
BBC News - Some diverse areas of England face car insurance 'ethnicity penalty'
https://www.bbc.co.uk/news/business-68349396
https://www.bbc.co.uk/news/business-68349396
Edited by Milkyway on Monday 26th February 08:39
People living in areas renowned for people driving like a cock and not in accordance with the laws on licences and insurance get charged more for car insurance, regardless of their own ethnicity... Fancy.
Think this should really be in NP&E though so we can all have a shout about how racist it is/isn't without filling GG up.
Think this should really be in NP&E though so we can all have a shout about how racist it is/isn't without filling GG up.
Is it ethnicity that drives insurance premiums? No. Insurers have vast amounts of data on claims made and driving behaviour. If an area is well known for appalling driving, driving without licences or insurance, industrial levels of insurance fraud such as crash for cash, racing or people keeping very expensive cars outside homes in rough areas then that’s why premiums will be high. It’s nothing to do with ethnicity. It’s risk.
If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
thole factor which is applied to calculate the premium the same as age, car type, driving history etc is used.First thing I remembered when reading this was the old top gear when they tried getting quotes and decided that identifying as a female was the cheaper option.
I’ve had insurance quotes double overnight with no changes.
Nothing surprises me with insurance companies. Next they’ll be asking where I typically shop and what roads I use so they can quote me based on that risk too!
I’ve had insurance quotes double overnight with no changes.
Nothing surprises me with insurance companies. Next they’ll be asking where I typically shop and what roads I use so they can quote me based on that risk too!
If a certain postcode produces worse claims stats than another, then people living there should pay more. End of story. Insurers cannot discriminate on grounds of race, but they can on grounds of postcode.
Insurers cannot charge women less than men, but they can give a discount for beauticians and bra fitters. Or charge extra for satellite dish installers. If any male beauticians get a discount off the back of that, good for them.
Insurers cannot charge women less than men, but they can give a discount for beauticians and bra fitters. Or charge extra for satellite dish installers. If any male beauticians get a discount off the back of that, good for them.
Dog Star said:
Is it ethnicity that drives insurance premiums? No. Insurers have vast amounts of data on claims made and driving behaviour. If an area is well known for appalling driving, driving without licences or insurance, industrial levels of insurance fraud such as crash for cash, racing or people keeping very expensive cars outside homes in rough areas then that’s why premiums will be high. It’s nothing to do with ethnicity. It’s risk.
If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
Yet the BBC article claims they saw higher rates in more ethnically diverse areas even when accident and crime rates were similar. If that was accurate, then it does suggest there may be issues with the way premiums are calculated.If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
NAAHD said:
Next they’ll be asking where I typically shop and what roads I use so they can quote me based on that risk too!
Why not? If they collate stats to show that people who buy their clothes from Primark have more claims because they're short of money and skimp on car safety or good tyres, or Primark shoppers have fewer claims because they are cautious with their money and are also cautious drivers, then go for it I say. No problem at all with that.
rscott said:
Yet the BBC article claims they saw higher rates in more ethnically diverse areas even when accident and crime rates were similar. If that was accurate, then it does suggest there may be issues with the way premiums are calculated.
Seeing how most crime doesn’t get reported these days I would say insurers have better data than the police. 
Dog Star said:
rscott said:
Yet the BBC article claims they saw higher rates in more ethnically diverse areas even when accident and crime rates were similar. If that was accurate, then it does suggest there may be issues with the way premiums are calculated.
Seeing how most crime doesn’t get reported these days I would say insurers have better data than the police. rscott said:
Dog Star said:
Is it ethnicity that drives insurance premiums? No. Insurers have vast amounts of data on claims made and driving behaviour. If an area is well known for appalling driving, driving without licences or insurance, industrial levels of insurance fraud such as crash for cash, racing or people keeping very expensive cars outside homes in rough areas then that’s why premiums will be high. It’s nothing to do with ethnicity. It’s risk.
If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
Yet the BBC article claims they saw higher rates in more ethnically diverse areas even when accident and crime rates were similar. If that was accurate, then it does suggest there may be issues with the way premiums are calculated.If, in fact it’s coincidentally true that ethnic minorities do in fact live in these areas then maybe they should consider cleaning their act up? I don’t see why I should pay even more than I already do to subsidise bad areas.
Very interesting to see the stats on "similar crime rates" as well, what crimes?, as the issue is often cars being stolen and smuggled abroad and some new cars are virtually uninsurable in London.
Milkyway said:
Perhaps insurers could introduce a postcode banding system...
Your address is rated as 'Z'... Kerching! (£££££)
( But I will accept that the car IS too big for that rented garage)
They do. I can’t find the exact listing, but this article describes it. It’s A-F then “contact underwriter” IIRC https://www.comparethemarket.com/car-insurance/con...Your address is rated as 'Z'... Kerching! (£££££)
( But I will accept that the car IS too big for that rented garage)
Edited by Milkyway on Monday 26th February 09:07
Killboy said:
While this is clearly not really related to "ethnicity", it's about time for a little bit of transparency in the insurance industry.
How so? An insurance company's stats are their own secret weapon, the information that they hope will give them the edge over their competitors. It's their intellectual property, and of course they want to keep it to themselves. We cannot decide if KFC is accurately priced until we know what goes into their secret blend of herbs and spices, but no one is demanding they release the recipe. There's loads of insurance companies and loads of fried chicken outlets. Look at the prices, and make a choice. You might choose to pay more for KFC than Chicken world because you decide it's better. You might pay more for Aviva than Titanic Insurance Co. Up to you.
My take home was don't live in either of these areas.
"For example, the quotes - for a 30-year-old teacher driving a Ford Fiesta - averaged at £1,975 if they lived in the Princes End area of Sandwell, near Birmingham. But in the nearby Great Bridge area, the average was £2,796."
I'm surprised the BBC throw around the race card so quickly and easily.
I can think of a handful of vastly more likely scenarios.
"For example, the quotes - for a 30-year-old teacher driving a Ford Fiesta - averaged at £1,975 if they lived in the Princes End area of Sandwell, near Birmingham. But in the nearby Great Bridge area, the average was £2,796."
I'm surprised the BBC throw around the race card so quickly and easily.
I can think of a handful of vastly more likely scenarios.
Edited by ChocolateFrog on Monday 26th February 10:12
All to with risk and nothing more.
If more claims are made within a particular area then the cost to insure in that area will go up.
Your clean driving history will only form part of your risk profile to insurers. You may be a safe driver but your neighbours may not hence why premiums can rise.
If more claims are made within a particular area then the cost to insure in that area will go up.
Your clean driving history will only form part of your risk profile to insurers. You may be a safe driver but your neighbours may not hence why premiums can rise.
ChocolateFrog said:
My take home was don't live in either of these areas.
"For example, the quotes - for a 30-year-old teacher driving a Ford Fiesta - averaged at £1,975 if they lived in the Princes End area of Sandwell, near Birmingham. But in the nearby Great Bridge area, the average was £2,796."
I'm surprised the BBC throw around the race cars so quickly and easily.
I can think of a handful of vastly more likely scenarios.
Scenario;"For example, the quotes - for a 30-year-old teacher driving a Ford Fiesta - averaged at £1,975 if they lived in the Princes End area of Sandwell, near Birmingham. But in the nearby Great Bridge area, the average was £2,796."
I'm surprised the BBC throw around the race cars so quickly and easily.
I can think of a handful of vastly more likely scenarios.
I get ripped off because I live in the Great Bridge area, but never had any issues.
I drive across town to see my relatives for a few hours & some 'yobbo' damages it whilst I am there... gutted.
Edited by Milkyway on Monday 26th February 09:59
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