Insurance Companies Use New Tech – Will Your Coverage Be Affected?

While it’s true that nobody is really expecting to see their insurance premiums go up, the reality is that a round of increases is bound to come your way. Why? It’s simple — insurance companies are using new technology. Your coverage will be based on where you live, what your profession is, and even how much you spend on everything else.

Businesses have discovered that they can figure out a little bit more about you based on your post code, including the type of environment that you really live in. Insurance companies love mining data like this, as they can look at past claims made in your area or street for a number of issues. Burglary? Check. Flood damage? Check. They will use this information to see who needs to pay more than who. Even if you have never made a claim in your life, a “risky” postcode could see you having cover refused or worse — offered to you at a sky high premium that would make it difficult to even afford it.

Motorists have been feeling the pinch the most, seeing their premiums go up by as much as 40% on average. The causes range from uninsured drivers, fraudulent claims, and tons of personal injury payouts.

The riskier areas might make you think immediately of London, but that’s not the case. Liverpool, Manchester, and Birmingham all exceed London by far.

Insurers say that the postcode matters because most accidents occur within five miles of a car driver’s home no matter if it’s accident, theft, or vandalism.

Home insurance and contents insurance are on the rise as well, and this is due to the same issues raging in the auto insurance world — fraudulent claims, severe weather related claims and more. The economy hasn’t helped matters at all.

Regional pricing is definitely here to stay, but that doesn’t mean that you have to get crushed. Make sure that you start looking at doing a lot more comparison shopping. Make these companies cater to you. Keeping a clean driving record and a relatively claims free record on other insurance products is really the way to go. It might not seem fair, but that’s the way it is in the industry right now. Better to work with the system as it is than pay more for insurance than what you have to.