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Wednesday, 29 March 2017

Why Do Postcodes Make a Difference?

Postcodes have been adopted for many uses over the years and are not just a way of automating the sorting process. Financial institutions use these alphanumeric codes to factor in other information when calculating what individuals will pay. For example, insurers of property and vehicles rely on this information in aiding them to assess risk and determine a policy value.



Pensions

Postcodes can be used by actuaries, those people who work on annuities, to determine the amount of retirement income a person will receive when they retire and based on the town in which they live. Postcodes are used as a quick reference to find the average wealth, health and lifestyle of a person based on statistics from that area over a period of time. This information is used when complex medical questions are absent from the equation.

Home Insurance

Home insurers will use postcodes to determine a premium on a home and for inhabitants that live in the high crime or geographically challenged areas can expect to pay high insurance premiums or even worse, total cover refusal, regardless whether a person has ever made a claim in their life. Information calculated over time about a town or neighbourhood; consider such risks as flooding, subsidence, theft, and street level crime. These are all factored in and can make a huge financial difference.

Car Insurance

Sometimes living in a good Town or neighbourhood is not enough to have a good postcode that will keep car insurance premiums down as the surrounding postcodes are often factored in. If the surrounding towns are high risk areas and can gain easy access with good escape routes, this is also taken into consideration and has a negative effect. Every postcode area in the UK is risk assessed by vehicle insurance companies based on their claim statistics and crime rate.

Loans

Lenders will often use a broad-brush approach and will use postcodes to determine credit risk, especially if the loan or credit applied for is on the spot, like a store card or mobile-phone. A postcode can be tainted by past indiscretions like bankruptcies, county court judgements and bad debt, all these can affect a person with a clean record.

Financial Mailshots

Marketing companies will use information from data sources like the national census, company's house and the electoral roll, and surveys that are making quantitative comparisons called geodemographic databases, using postcodes to determine the value of an area in marketing terms. Those affluent areas according to statistics will receive more mailshots and junk marketing mail.

Living in SW19 Postcode

SW19 is the postcode district in South West London incorporating the areas of Merton Park, Wimbledon, Southfields, and Colliers Wood. SW19 is covered by the Wandsworth local authority. There are many Edwardian and Victorian terraces as well as modern and luxury apartments, from different price grades. There are great local transports systems and a vast amount of amenities always close by with a choice of local schools and recreation facilities.

If you would like to find more information about apartments to buy in Wimbledon contact Robert Holmes.
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