Adam moved 1,000 yards – so his insurer DOUBLED his car insurance
it’S A short walk from Adam Grainger’s old house where he lived with his parents, in Upper Beeding, Sussex, to his new one. it’s only half a mile away — but as far as his insurer is concerned it may as well be another country.
Because when the 30-year- old told them he had moved home, they hiked his car insurance by an extra £474 a year because they claimed it was a much more risky area.
effectively, it means that every step he takes away from his old home to his new adds 50p to his insurance.
in all, his insurer, 1st Central, expected him to pay £1,100 a year.
Adam, a call centre worker, who moved in with his girlfriend, was still driving the same 12-year- old MG as at his old address. Just like before, he also planned to park it on the driveway.
He says: ‘i thought it must be an error and queried it straight away. i asked to speak to a manager and they told me there was a history of claims in the area.
‘if i’d moved to downtown Baghdad i could understand it. But it’s a tiny village, and paying more seems ridiculous.’
So is Upper Beeding really so risky? the village has around 3,700 inhabitants and is bordered by the South Downs. Many of the buildings date back to the 18th century and the river Adur wends through the centre of the village.
According to figures collated by Sussex Police, there have been seven reported vehicle crimes in the village in the past year. Most of these crimes were closer to Adam’s old address than his new one.
Steve Coberman, parish council clerk, says: ‘Upper Beeding is certainly not a crime hotspot. it is a semi-rural parish and much of it is in the South Downs National Park.
‘We might have the odd incidence of petty anti- social behaviour — mostly dog fouling or someone riding a moped too quickly — but not anything serious. road accidents are rare.’
Addresses are important factors which insurers use to decide how much a policyholder’s premiums should be.
Firms can use new mapping technology to examine the risks associated with each postcode. For instance, if someone lives in an urban area an insurer might consider there is a greater risk of their car being involved in an accident.
By contrast, someone living down a secluded lane in the countryside could be more in danger of falling victim to an opportunistic thief.
insurers also use a range of other factors to decide how much your cover should cost, which are just as important. these include someone’s job, how long they have been driving, any convictions or claims, as well as the age and make of their car. But exactly how insurers decide on what premiums to charge is a closely guarded secret and has come under scrutiny recently.
last month the Mail revealed how insurers were snatching £1 billion a year from unwitting policyholders who blindly accepted the renewal quote they were offered each year.
And, it was revealed how the actress Sheila Hancock had seen her car insurance rise from £873 to £2,246 a year without warning. the 82-year old had driven for 63 years without making a claim on her insurance.
there are concerns that some firms attempt to wring extra cash out of customers when they make a policy change, such as moving home. Other customers have complaining of similar problems.
rosie Meloy took to twitter to complain that 1st Central had increased her monthly premiums by 50 pc and taken a £30 charge for ‘moving five minutes away’.
Meanwhile, Carley Jones complained about a £100 charge simply to change an address, months after she took out her original policy.
A spokesman for 1st Central says: ‘A number of variables are taken into consideration when renewing customers’ policies, some of which are address related. in updating Mr Grainger’s policy following his change of address there has been a break down in process for which we apologise.
‘1st Central guarantees that renewal prices will be cheaper than new business on a like-forlike basis, and if Mr Grainger would like to renew his original quote we would be happy to honour that lower price.’