EU rules that quoting insurance based on postcode will be illegal from June

In another shock anti-discrimination move the EU rule that from 11th June 2013 it will no longer be legal to discriminate based on postal area / postcode.

The move was inspired by a recent executive lunch in Brussels in which one diner observed that insurers are using postcode to rate some premiums cheaper for specific consumers while expecting others to pay more.

The European Commission declined to comment to RiskHeads but we managed to invent the following very likely quote: “We think everyone should pay the same price for their insurance; even serial claimers and criminal gangs deserve a fair chance when purchasing car insurance online.”

This latest announcement follows similar changes regarding sex and age based rating.

Insurance organisations across the country were up in arms:

“Without the ability to rate based on postcode, how will we know who the bad guys are?”
–Roger Baggnakton, The National Insurer’s National Insurance Insurance Database

“Some postcodes are really dodgy. I wouldn’t go to Nottingham’s NG1, would you?”
–Elvis Marteen, Graceland Insurance

“I was thinking about taking the wife to Brussels next year.”
–Burt Badgerton, Airfix Model Appreciators Inc.

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  1. Hi
    to me this is something that Brussels has got right. I am not pro europe and think we are far to ruled by politicians that are out of touch with what is good for Britain. I though have never agreed with the postcode lottery when it comes to insurance. You should have an over all premium where everyone pays the same wherever they live.

    great news lee

    1. So what do you suggest they calculate premiums on? If there’s 5,000 accidents in London per month and 10 in Leeds, why should the people in Leeds be punished for the frequency in London? People only complain when they’re the ones being negatively effected…

  2. Excellent news,as my insurance quote in Manchester was between £2,500 – £3,300 fully comp.All they need to do now is let you keep your hard earned no claims discount from when you started driving instead of having to start again,which I am having to.

  3. Roger Baggnakton is a freakin tw@t!!. i live in N9 north london and because of my postcode im a bad guy? far from my friend. 3 years no claims and £1000 a year to insure a 1.2 WTF!!! and im 27!!!

  4. It sounds good. If they change the postcode rules, then fraud insurance will be reduce by almost 100%. But insurer need need to stop paying for the minor personal injury, nowadays people make fraud claim to get some money. sometimes intentionally people involves in accident.

  5. Hi
    It’s a great news for everyone. I paid £6000 in two years, just because of my post code which is 4 times higher. Now it’s a perfect time for insurer to stop being unfair.

        1. No, but postcodes can represent the roads on which people are more likely to have accidents. Actuarial data suggests that there is a significantly increased chance of some who regularly drives in London having an accident than in more rural locations, if only due to the density of cars on the roads. Bare in mind that crime rates in London are also significantly higher, thus pushing up the chance of you having a theft claim.

  6. Please could you show me where on the EU website where this new policy is as im arguing with my insurance provider as i am moving house (2 miles away) and my insurance goes up by £600 for the move.

    1. I share your pain Lee – I got charged an extra £400 on my car insurance because I went from Business Developer to Business Development Director – same job, different name. The irony was that the latter job see’s me doing around 10k miles per year compared to the former’s 40k miles per year!

  7. – A blog released on April 1st
    – A quote that they have ‘had a guess at’
    – Three further ludicrous quotes
    – Legislation that nobody has ever heard of

    Do we think this might be an April Fool’s joke people?

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