Will Moving To A Nicer Area Lower Insurance Premiums?
Moving to a nicer area is high on the list of priorities for a lot of people. Doing so however can be expensive! To achieve the goal of moving to a better area you might be hoping you can make savings in other areas. Many people think that moving to a nicer area could lead to lower car or home insurance premiums, but is this really the case?
It Seems Logical
When you look at it on a surface level it seems logical that moving to a nicer area might help to lower insurance premiums. Better areas tend to be quieter and more secure. As you drive around the streets you might see good security systems, high fences or gates restricting access to potential thieves. Most of the houses might also have driveways to park your car on so it isn’t being left out on the road overnight. There might also be some sort of neighbourhood watch scheme in place meaning your neighbours are also keeping an eye on your property. When you think more cynically about the points we’ve just mentioned though you will begin to see why your insurance premiums might actually increase by moving to a nicer area!
When it comes to setting insurance premiums, insurance companies look at the points mentioned above in a very different way.
Although the nice area you want to move into might seem safer and more secure, think about why it needs to be. Nicer areas are often more affluent, the more affluent an area is the more attractive it is to thieves. As for the high fences and secure gates on houses they are there for a reason, to deter thieves! These high fences and secure gates could even serve to help thieves once they do get into a property by obscuring the view of onlookers who might otherwise call the police. Thieves will always find a way to get into a property if they really want to, because of this any area that attracts theives will also attract higher insurance premiums.
You might not own a lot of expensive possessions yourself but unfortunately insurance companies base their premiums on postcodes not individual houses, so this may not serve to dramatically lower your insurance premiums.
What about car insurance premiums, might they be lower? We have the same problem. Nicer areas tend to be more affluent areas and as a result the people who live in these areas tend to buy more expensive cars making the area more attractive to thieves. Again it’s good to remember that it won’t make a difference if you don’t own a flash car yourself, your car insurance premium is still likely to be higher not lower simply due to the postcode.
Budget For Higher Not Lower Insurance Premiums
So when thinking of moving to a nicer area it’s important that when you decide on a budget you account for a potential increase in insurance premiums rather than unrealistically pinning your hopes on lower insurance premiums.