Insurance Question
Discussion
Trying to understand how my Son's insurance doubles when he uses his Army barracks (secure camp in the middle of nowhere) post code in Andover compared to mine in the North East. Is there really double the risk between Tidworth (South) and Cramlington (North)? How can you find out the reason behind it, is purely on statistics and driving in Tidworth is a crash waiting to happen?
tony wright said:
Trying to understand how my Son's insurance doubles when he uses his Army barracks (secure camp in the middle of nowhere) post code in Andover compared to mine in the North East. Is there really double the risk between Tidworth (South) and Cramlington (North)? How can you find out the reason behind it, is purely on statistics and driving in Tidworth is a crash waiting to happen?
It increases because of risk based on past claims experience. It's that simple. I'd look at it slightly differently. The risk isn't the risk of theft, it's the risk of your son having a fault accident in his car and causing others to have a valid claim. In Cramlington, a sleepy little village not far from the Scottich borders there's not a lot happening and so claims experience (frequency and severity) is likely to be low.
Now the flip side is a group of Army lads, who are young and out on the piss decide to go for a blast to the nearest town to grab some local fillies. In their excite the the driver crashes amd injures his three passengers. There's a few claims straight away.
Or he could crash into a few other cars. There's quite a few more claims.
You see a group of young adults are likely to crash, it's a proven stat. Now throw in the army and high spirits / first weekend back from a tour in Afghanistan and you have a nightmare scenario for an insurer.
I am surprised the insurance is not higher!According to http://www.motorcarinsuranceuk.co.uk/post-code-rat... Cramlington (NE23) is "D" - higher risk than Tidworth (SP9) "B".
My son's car insurance jumped when he moved to a different barracks within Aldershot. All that really changed was the overnight parking location, from on the road to work car park. He thinks it's because he told them "others have access" even though the others were armed Gurkha patrols.
My son's car insurance jumped when he moved to a different barracks within Aldershot. All that really changed was the overnight parking location, from on the road to work car park. He thinks it's because he told them "others have access" even though the others were armed Gurkha patrols.
[quote=Nimby]According to http://www.motorcarinsuranceuk.co.uk/post-code-rat... Cramlington (NE23) is "D" - higher risk than Tidworth (SP9) "B".
This is why I'm finding it difficult to understand. When we googled it, Cramlington appeared to be a higher risk area. So after using the same data it must come down to his Barracks as his employment was the same on both quotes. Now going on Loons explanation his risk has not changed other than where he lives (Barracks) as his circumstances are the same. The way I see it (which I know accounts for nothing) is the Camp is far less likely to have issues. It's secure, basically 0% chance of car being stolen, and far, far, less risk of drink driving as Soldiers are stopped on re entry to base. So as insurance companies work on data and risk assessment where would they gather such information to enable them to double the premium.
This is why I'm finding it difficult to understand. When we googled it, Cramlington appeared to be a higher risk area. So after using the same data it must come down to his Barracks as his employment was the same on both quotes. Now going on Loons explanation his risk has not changed other than where he lives (Barracks) as his circumstances are the same. The way I see it (which I know accounts for nothing) is the Camp is far less likely to have issues. It's secure, basically 0% chance of car being stolen, and far, far, less risk of drink driving as Soldiers are stopped on re entry to base. So as insurance companies work on data and risk assessment where would they gather such information to enable them to double the premium.
tony wright said:
So as insurance companies work on data and risk assessment where would they gather such information to enable them to double the premium.
Claims data based on soldiers living at barracks will be the deciding factor I would imagine. It's not all about theft & potential for drink driving.Nimby said:
According to http://www.motorcarinsuranceuk.co.uk/post-code-rat... Cramlington (NE23) is "D" - higher risk than Tidworth (SP9) "B".
Those were the ratings one particular insurer (Aviva?) used for motorbikes about 15 years ago. They have no relevance to car insurance in 2015. They're just used now by a few dubious websites to bring in Google clicks.Soldiers have a higher risk of mental health issues, often drive tired and at very strange hours. They also have long trips when driving home etc.
I would imagine the increase is purely down to employment & distance from home.
Having my occupation as police officer puts an extra £150 a year on top instead of a regular profession such as Electrician which I guess is down to shift work, driving tired etc.
I would imagine the increase is purely down to employment & distance from home.
Having my occupation as police officer puts an extra £150 a year on top instead of a regular profession such as Electrician which I guess is down to shift work, driving tired etc.
Nimby said:
According to http://www.motorcarinsuranceuk.co.uk/post-code-rat... Cramlington (NE23) is "D" - higher risk than Tidworth (SP9) "B".
My son's car insurance jumped when he moved to a different barracks within Aldershot. All that really changed was the overnight parking location, from on the road to work car park. He thinks it's because he told them "others have access" even though the others were armed Gurkha patrols.
That link just proves that one single Insurer rated motorcyles in NE23 a higher risk than SP9 around ten + years ago.My son's car insurance jumped when he moved to a different barracks within Aldershot. All that really changed was the overnight parking location, from on the road to work car park. He thinks it's because he told them "others have access" even though the others were armed Gurkha patrols.
When those rating areas were current, they only applied to Aviva (Or Norwich Union as they were then) and then only to motorcycles which have a completely different rating area structure than motor cars.
Using that link is widely miss leading
tony wright said:
This is why I'm finding it difficult to understand. When we googled it, Cramlington appeared to be a higher risk area. So after using the same data it must come down to his Barracks as his employment was the same on both quotes. Now going on Loons explanation his risk has not changed other than where he lives (Barracks) as his circumstances are the same. The way I see it (which I know accounts for nothing) is the Camp is far less likely to have issues. It's secure, basically 0% chance of car being stolen, and far, far, less risk of drink driving as Soldiers are stopped on re entry to base. So as insurance companies work on data and risk assessment where would they gather such information to enable them to double the premium.
I've already explained that theft has bugger all to do with this. It's the risk of a fault accident and the costs associated with that. Is this so difficult to understand?Edited by LoonR1 on Thursday 27th August 10:41
Yes I understand, but your suggesting that insurance companies have actually recorded data on that specific Barracks. Remember he used the same data on the quote using my address i.e. Soldier, so the antics a young soldier gets up to remain the same but in a different area. There are Barracks less than twenty miles away from here (Ouston) so he could easily be in the same position as he is in Tidworth. Secondly, what if he and a bunch of mates decide to rent a flat outside of camp, would his insurance drop by 50%, even though the circumstances have not changed? Actually they have been made worse, they are now free to come and go in their cars without any possible security checks. If it's to do with claims from that specific address, it's highly likely they are going to be larger than normal as you possibly have over a thousand people working and living in a small area.
tony wright said:
Yes I understand, but your suggesting that insurance companies have actually recorded data on that specific Barracks. Remember he used the same data on the quote using my address i.e. Soldier, so the antics a young soldier gets up to remain the same but in a different area. There are Barracks less than twenty miles away from here (Ouston) so he could easily be in the same position as he is in Tidworth. Secondly, what if he and a bunch of mates decide to rent a flat outside of camp, would his insurance drop by 50%, even though the circumstances have not changed? Actually they have been made worse, they are now free to come and go in their cars without any possible security checks. If it's to do with claims from that specific address, it's highly likely they are going to be larger than normal as you possibly have over a thousand people working and living in a small area.
Are you asking questions, or making statements?The fact is that his insurer sees a strong correlation in their statistics and claims experience between soldiers with the barracks postcode (so yes they will have barrack specific data) and fault claims. That's why it costs more. End of.
Please stop posting about theft / security checks. They are a complete red herring and totally irrelevant.
bradjsmith88 said:
To flip the security point on its head he has access to an area the general public do not, where there is potentially some very expensive military equipment.
Yes it may be less likely to be stolen, but also more exposed to an expensive third-party claim.
He doesn't seem to understand what a third party claim is or the fact that they're the expensive claims. Yes it may be less likely to be stolen, but also more exposed to an expensive third-party claim.
bradjsmith88 said:
LoonR1 said:
He doesn't seem to understand what a third party claim is or the fact that they're the expensive claims.
'The car isnt even worth as much as the insurance' is my favourite phrase to correct!!Alot of pricing is liability led nowadays..
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