Motor Reduction in insurance premium

Hi all,

Moved address two months ago and am currently 3 months into car insurance premium. Two cars, both with two different insurance companies.

One insurer reduced premium by 40 euro, other wouldnt as they dont reduce premiums during the year.

I asked then why would insurer 1 go and give me a reduction when, by all accounts, they wouldnt have to based on insurer 2 not reducing my premium mid contract.

I am in a less risk area, parked on private grounds and feel that insurer 2 isnt reducing the premium thinking I will leave it at that.

Are they right or am I entitled to a reduction? Is insurer 1 being "kind" in giving me the reduction?

Many thanks

They may in fact look to charge you an administration fee as you changed policy details mid-policy (your address). It is unusual for insurers to reduce premiums mid-term IME, but not unusual to raise them (change of car, change of use, etc.)

When i changed motorcycle my insurance company sent me a cheque out as the new bike was in a lower category.That was mid-policy..

Hi all,

An update for you on this.

Apparently insurance companies dont have to reduce/increase premiums depending on where you live.

It's all based (apparently) on a few factors.
Some insurance companies take into account the age, experience, sex, type of car, size of engine and LOCATION when building up a premium.
Others may only take age,sex, car type, for example.

In my particular case insurer 2 does not take into account location. So whether you lived in the most secure, low risk location and moved to the most high risk location your premium does not increase. This is also the case when I go to RENEW my premium next year. If my new high risk location address is the same next year, then my premium will not go up despite the high risk.

To confirm this I asked the person I was dealing with on the phone (broker for allianz) to troubleshoot various high risk areas for next year, and compare it to my low risk address this year. The broker even put in some areas that were at one stage not offering insurance. It all checked out that insurer 2 would not penalise me on that address.

So, while insurer 1 reduced the premium on my new low risk address, had I moved to a high risk address then most certainly a premium increase would have applied.

Just to make things a little more interesting, the broker was using a nissan note for his examples, so I asked it to be changed to a more higher priced, potentially higher sought after car (in my opinion however this may not be the case). All the above still applied.


So in conclusion the key here is what's mentioned in the policy. Do they reduce/increase premiums based on addresses? As I've discovered, its all down to the Insurer.

I hope this helps others who may have come across the same problem.