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We've been told our insurance has gone up in our area because an identical car was stolen - is this right?

My daughter has just been told (by a mainstream and well-known insurer) that her premiums have just gone up because an identical car in the same postcode was stolen, therefore the premiums go up. Of course she tried a few others and was told the same thing. Surely this can't be correct?

Asked on 15 December 2023 by PsychoTeapot

Answered by David Ross
Insurance companies look at a huge number of factors when calculating premiums, and theft rates for individual vehicles and location are key risk identifiers. Arguably the theft of a single vehicle in your area does not mean the theft of other examples is increased, but from the insurer's perspective it may mean it is more likely to be stolen than similar vehicles. Insurance companies make decisions based solely on statistics, which unfortunately means they can sometimes appear illogical.
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