Interpreting UK Postcodes-Are Postcodes Saying Too Much About You?

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Since the book “1984” by George Orwell that introduced the concept of big brother watching over you, and the subsequent realization that the government is practically watching you, it is almost nauseating to think Postcodes are saying too much about you to just about anyone. Generally, postcodes are very valuable and companies pay attention to them when quoting the cost of a specific product. In fact, whether it is annuities, life insurance, council tax, house price, home insurance or car insurance, your own postcode plays a huge role in what you pay.

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With almost two million postcodes in the UK, anyone monitoring such data has a lot of work to do. In a typical postcode, there is a letter standing for something and another representing a number. The first letter or a pair of them will identify a specific area; next letter identifies the district where you live and so on. Your full postcode in the UK represents the street you live or a small village or a location with a street. For every code provided, the area is limited to about eighty properties.

A postcode is divided into two main parts. The first section before the space is the outward code and helps in routing mail to the right regional office for sorting. After the space the part of the postcode is known as inward code and helps in sorting your mail into specific delivery rounds of a certain sorting office.

When they were first given, postcodes were used to help modernize the affairs of the postal service but these postcode letters have become a major part of UK residents’ finances. They have a huge influence on the products one is buying, the amount to pay for such items including the way insurers and banks are dealing with the English.

Pensions

Due to postcodes, some people across the UK are enjoying bigger pensions beyond their expectations. Since the rates of annuity rely on life expectancy, those likely to have a long life receive lesser income per their own pension. The reason is because postcodes are a major indicator of health, lifestyle and wealth. For pension companies not asking lots of in depth questions on health, postcodes are giving out lots of information leading to accurate pension and annuity rates.

Insurance

Companies offering insurance cover use a full postcode to come up with the best cover price. They are a dominant part when it comes to pricing the threat of subsidence, flood and theft largely affected by location. If a region is deemed bad or good the difference could be equal to half the cost of a premium in home insurance. Also, those seeking motor insurance will find postcodes highlighting accident and theft hotspots.

Loans

Living in a neighborhood where people are borrowing recklessly easily damages chances of accessing credit card or loan. Companies dealing with credit information have found that people live in areas where the neighbors are like them, and a correlation exists between credit rating and where one lives. Postcodes are given a specific credit score by credit reference companies on a scale of 500 to 1000 as per the menace of bad debts.

In other words, your postcode tells more than you will ever say.

About Author

Michael is an avid travel blogger who lives in London and travels a lot in his lovely sports car. He occasionally uses UK postcodefinder to get information on certain post codes and area information that he is not aware of.

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