Does Where You Live effect Your Auto Insurance Premium?

Your Zip Code and Your Car Insurance

What does your zip code have to do with your car insurance policy you ask? A lot! Where you live and what kind of neighborhood you have is also part of the criteria insurance companies use when determining your auto insurance premium. Knowing this fact will help you in shopping for insurance and can definitely get you better rate deals.

Your car insurance rates can skyrocket depending on where your house is located and how you use
your car. Consider this: If you live 20 miles away from your office and you drive to and from work every day, you would probably accumulate more mileage than say if you lived 10 miles away. The increased mileage would equal to a higher insurance premium. This is because more mileage means having a higher risk of getting into accidents.

Access to public transport can also work for you. If you do have access to trains and buses, this tells the insurance company that you can commute to work or any other place instead of using your vehicle. If you don't use your car regularly because you opt for the bus from time to time, your car insurance rate will decrease.

Your place of residence should also be in a safe neighborhood. If your area has a high crime rate, this would mean a higher car insurance premium since the risk of your car being stolen or vandalized is high. So if you are also shopping for a home, make sure to take this into consideration.

These tips can also help you if you are looking into moving to a different neighborhood. Not only will these factors affect your car insurance policy, they can also affect your shopping for house insurance. Make sure to calculate how much you will actually save on getting a cheap home as oppose to the amount of auto insurance you would have to pay annually.

Don't despair if you live in a zip code that is not favorable, however. Again, you can get a cheap car insurance rate if you use your vehicle wisely. By lessening the times that you use your car, you will lessen your auto insurance premium. Also, if you have a garage in your house, you can also use this as leverage with your insurer as this would lower the risk of auto theft .

If your house is located near a police station or government offices, that could be beneficial to you as well as this would show that there is a low risk of crime in the area. Schools, malls, or other establishments can also be mentioned to make your zip code favorable.

Make sure to also shop around the Internet for the best deal in car insurance rates. It does not mean that if one car insurance company quotes your zip as a high-risk area you should take their word for it. There are a lot of sources online that can help you get the cheapest car insurance rate available. You only need to be patient and look for the most favorable auto insurance rate out there.

by Shay West