Lack of "diversity" = cheaper car insurance!

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Howth Head

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Headline from the Irish Independent today

Study finds 25-year-old in affluent south Dublin can pay less for car insurance than 60-year-old in poorer, more diverse area

Where a person lives is a key factor in calculating the cost of car insurance, a new survey has found.
www.independent.ie

There's nothing new about this of course. I remember when living in South London in the early 1990s postcodes ruled when it came to all kinds of insurance costs - not to mention house prices, rents etc. The novelty for me at the time was that it differed greatly even within small areas (e.g an end-house near a laneway at the periphery of a tiny development would be hit harder than someone a few doors away.)

Study finds 25-year-old in affluent south Dublin can pay less for car insurance than 60-year-old in poorer, more diverse area:

"Living in a more deprived, more ethnically diverse location increases your chance of receiving a higher quote, a new survey on the Irish insurance industry has found.

This can lead to extreme situations where a 25-year-old in south Dublin gets cheaper cover than a 60-year-old living in what the researchers describe as “poorer locations”.

It means that motorists are subject to a “postcode penalty” when fulfilling their legal requirement to get cover."
 
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I have driven in every Dublin postcode and driver behaviour does not vary that much between them, in fact the most dangerous driving by far in Ireland is on rural roads.

My guess is that insurance claim rates vary massively by postcode within Dublin, and this produces the pricing differential. You can fill in the blanks yourselves.
 
Dr Strangelove said:
I have driven in every Dublin postcode and driver behaviour does not vary that much between them, in fact the most dangerous driving by far in Ireland is on rural roads.
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Very little joy riding where I live now but it was a regular issue when I lived in D12 with cars parked on the streets being damaged in the process. Incidents of car theft or general vandalism are also higher in these areas.
 
The subject was covered on Newstalk this morning. Longford town apparently the most expensive for car insurance - does't take a genius to figure out why that might be the case!

(I'm not permitted to include the link to the discussion for some reason - perhaps someone could post it from Newstalk's Home page)

Dr Byrne said that certain criteria seem to decide car insurance costs in a location.

“Based on the contextual information that helped us select these locations, there would be a higher crime rate, lower house prices, and more ethnic diversity in these areas,” he said.

“You may not be aware that if you live in a certain area there may be bits of information that is being factored into the price.

“It does seem to be the case that those that can afford to pay more don’t and those that can’t afford to pay more do.”
 
I think he's just pointing out the irony. (The diversity/crime co-relation is interesting and would upset a lot of NGOs I can think of. Of course it likely isn't causal - probably more to do with the fact that a certain cohort of migrants would tend to live in the less salubrious neighborhoods.)
 
huskerdu said:
It’s not new that address can impact car Insurance quotes .......
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Very true. Earlier this year a friend lived in south county Dublin, he bought a new home a few kilometres away in Dublin 18. His car insurance renewal arrived before the move at €500. He phoned his insurer telling them of his new D.18 address and his premium went up by €130. Both areas would be well regarded.
 
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