Postcode blacklist- check if your car will be covered before moving
Car insurance postcode is specifically a list of postcode for areas that are not covered. Depending on terms and policies, insurers offer different levels of coverage to people residing in different locations of a country. High risk area residents are charged higher than those who live in moderate risk areas. Similarly, some areas that bear very high risk of damage or theft are listed in the postcode blacklist, which means that company do not offer coverage to vehicles registered in these areas.
As we always advice customers to share information with their insurers to ensure proper claim processing and payment, address change is one of them. If you happen to move to a different location in a country, make sure that you confirm with your insurer about the status of your insurance cover. By doing so, you can be sure of having proper coverage at the new place. There has been many cases when the coverage terminates due to certain restrictions of a policy or terms laid by insurance company.
One such incident took place with Mr. Benson. He was continuing an auto insurance policy with a vendor from last ten years without any problem or hassles. In 2009, he happened to shift to London permanently because of his job. When he called his insurance company to notify them about the address change, their reply came to him like a tremor. Due to his relocation, the insurance company voided his vehicle insurance policy and his car was left without any coverage. Moreover, according to traffic laws prevailing in UK, having car insurance is compulsory. Mr. Benson was taken back due to the fact that he was betrayed by his company even after being loyal with them for ten long years. He somehow managed to get coverage from some other company at comparatively higher prices, but he had to bear the penalties for keeping his car uncovered during the gap.
There is no escape from this blacklist, hence it is advisable to consult the car insurance company before moving to a different postal code and confirm all the changes that will come into effect on the policy.
Article written by the marketing division of Compare.Com.