If you live healthily, you pay just as much for basic insurance as someone who lives unhealthily. That is the solidarity principle of health insurance. How different is it with car insurance.
Insurers look at, among other things, your age, claim-free years and which car you drive. These factors partly determine the premium. But airlines are going further and further. More and more car insurers have a strict postcode policy.
What does this mean to you?
In the most unfavorable case, that you would have been cheaper for exactly the same car insurance a little further down the street. For example, residents on Velperweg in Arnhem with zip code 6824 BL pay more than 40 percent more for their ASR car insurance than those with zip code 6824 BJ. A distance of less than 300 meters! (Also view other examples.)
Why do car insurers do this?
Companies want to bring in better risks as much as possible. In other words: new customers, for whom the chance that they will suffer damage is as small as possible. Because just check: the less damage, the less costs. And the fewer the costs, the more profit.
Insurers lure the better risks with a lower premium. After all, they assume that the number of damage claims with these new customers is kept to a minimum.
How do insurers know who has a low claims profile?
Thanks to the computer, it is becoming increasingly easier to calculate complex files with statistical data. In this way, insurers can determine very precisely who for them the low-risk customers are. And one of the things that insurers come up with is that certain zip codes involve a higher risk.
Now you have always paid more in the big city than in the countryside. But in recent years, insurers have even looked at street level within a neighborhood of one city.
A number of car insurers are at the forefront of this trend. In addition to ASR, these include companies such as ANWB and ING. But other insurers cannot in fact stay behind, otherwise they will praise themselves from the market.
That’s how it is. A car insurer without a strict zip code policy still charges an average premium. Starting from customers with a small and a large risk of damage. But if customers with a small risk of damage switch to insurers with a lower premium, those with a high risk of damage will lag behind.
The latter group does not feel any incentive to switch. They pay an average and therefore favorable premium. The result: the car insurer incurs more costs in compensation than it receives in premiums. And that means red numbers sooner or later.
In the coming years, therefore, more and more car insurers will offer customized premiums. The time that you could look up in a booklet at which premium you could insure a car is over. All insurers will soon be using a black box in which many factors determine the premium. And the outcome is just as unpredictable.
Compare almost all car insurance policies and see how much it matters.