If you move from the suburbs to the city, from one side of town to the other, or even a few blocks away, better check your policy at renewal time. Although several factors affect your car insurance premium, one of the hot issues in the past few years has been the relationship between your premium and your zip code.
Factors Insurance Companies Use to Determine your Premium
These are the most common factors that determine your auto insurance rates:
• Driving Record
• Number of Miles Driven
• Where You Live (zip code)
• Age of the Driver
• Type of Car Owned
• Amount of Coverage
• Credit
You may be a good, experienced driver, but when it comes to auto insurance in many states, your zip code is your identity. Just because you live in an expensive downtown loft with a secure garage doesn’t guarantee lower auto insurance rates. Insurance companies use a variety of things to determine how much the risk is on a particular policy. Where you live, who lives in your neighborhood, (families, young single people, etc.), what kind of car you drive, the amount of traffic in the neighborhood, and the number of claims within that neighborhood, are just some of the things that will determine what certain rates are in a particular zip code.
The cost of your auto insurance is also influenced by the crime rate in the area you are living. If you reside in a neighborhood where the risk of vandalism, theft and other crime is high, the rate of your auto insurance increases accordingly in many states, even if you have a spotless driving record. Where you reside makes a lot of difference. Those who live in areas where there is little or no traffic will definitely spend less on insurance premiums compared to those who live in cities and congested suburbs. Obviously, areas with a lot traffic are more prone to accidents.
Courtesy of Sue Richardson
Allen Tate Insurance
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