2 August 2007
The RAC has fought back at recent claims that a person's post code affects their car insurance premium.
The breakdown recovery company has stated that while a post code will have some effect on a person's premium, the effect will be minimal, and it will not compare with the effect it has on your home insurance.
Moreover, RAC spokeswoman Liz Kennett told moneynews that where the car is parked will have a greater influence on premiums cost.
"Because cars they tend to go with us wherever we go - [postcodes have] less of an impact on car insurance than home insurance," Ms Kennett explained.
"Home insurance is very much based on your postcode and where you live."
Meanwhile Ian Crowder from the AA agreed that a person's age and sex still has the biggest effects on the premiums a person pays.
"If you're a man having just passed your driving test you present the highest possible risk to an insurer regardless of the type of car that you drive," he said, although in a testament to how much these factors make a difference, he explains just how much a post code could make a difference to your premium:
"Postcodes certainly make a difference to premium costs," he pointed out. "If you're in an inner city area and you leave your car on the street you could pay three times the premium of somebody on the outskirts of town in a leafy cul-de-sac with their car parked in the garage."
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