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Motor insurance benefits from living near church

Mon, 12 Dec 2005

Drivers who live close to a church could find their Motor Insurance being reduced.

A new study by the US-based Insurance Federation suggests that living near a church or a restaurant could be linked to a 30 per cent lower risk of being involved in an accident.

However, motorists who live close to a school or off-licence may find that their motor premiums will be increased to take account of a greater risk of being involved in a collision or accident.

"It has nothing to do with you, it’s about people around you," said Mark Kulda of the Insurance Federation.

He added: "If you live in an area where a lot of people have a lot of accidents, the chances of you getting in an accident - even though you’re a good driver - are a lot higher, and because of that you end up paying more."

However, it is unlikely that insurers would be able to administrate such differences between neighbouring areas and are it is expected that they will continue using larger post codes areas to assess risk for the foreseeable future.


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