Insurance industry plumming new depths:: why the poor will pay more


I am almost too angry, sickened and embarrassed to add any comment to this article, but here it is…absolutely disgusting!

‘One theory is that if you are careful with your credit you are more likely to be careful with other areas of your life, such as maintaining your vehicle,’ he says.

In another move, insurers are using ever more sophisticated software to decide the risk of someone living at a specific address.

Insurers are using your whole postcode — which covers just a few neighbours —rather than the first three or four digits, which dictate your region.

This means if your neighbours have a number of particularly bad accidents, your premiums could soar. Figures from insurer esure show innocent drivers living in the B31 postcode area of Birmingham saw their insurance premiums jump after a 300 per cent increase in claims in their area.

On top of hiking premiums, insurers are taking an increasingly hard line on claims.

via Why the poor will pay more than the rich for car cover | This is Money.

One Response to Insurance industry plumming new depths:: why the poor will pay more

  1. According to the article, the theory behind the check is that drivers with low credit scores will find it more difficult to cover the cost or repairs – increasing their chances of making a claim, thus finding themselves landed with a higher insurance premium.

    Marc Gander, founder of campaign organisation Consumer Action Group, was quoted as saying: “This is appalling. Insurers are saying poorer people are riskier.

    “I doubt there are any proper statistics to prove this. It is just insurers looking for another way of grabbing more of our cash.”

    Read more: http://www.insuranceage.co.uk/insurance-age/news/2219566/biba-denies-secret-credit-check-investigation-claims#ixzz2ADq3oaUh
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