How your Address Affects your Car Insurance Premium
One of many factors that may increase or decrease your car insurance rates is a change in address. A new address leads to a new rate. The rate is higher in densely populated areas as there are more vehicles on the road. There is a higher risk of accidents in populated areas such as California, Texas and New York, while in rural or less populated areas, such as Alaska, there tend to be fewer vehicles on the road which means there is a lower risk of accidents.
Risk Factors
Insurance companies use a number of factors to calculate a risk associated with a given address. The higher is your mileage per year, the more you may pay for your insurance premium. This is usually the case if you spend more on the road while commuting to work.
How Good is your Neighborhood?
The number of thefts and crime taking place in a neighborhood, time taken for fire trucks, police vehicles and ambulances to reach the area also insurance risks taking tied to a particular address and use to calculate your quote. Using local insurance companies to buy your automobile insurance can help you save as they have better data on local addresses than others. Our easy insurance quotes form at the end of this article can help you obtain and compare insurance rates online from leading insurance providers in or near your Zip Code.
Risk Zones
Risk is assigned to certain zones and consistently recalculated as new data on a particular address is available. The rate of car insurance in an area may increase if the density of cars and drivers is high or if the rate of car theft, general theft or vandalism is high. If you move to a zone with few cars and a low crime rate, the rate of your automobile insurance will be lower.
From Home to Work and Beyond
Moving closer to a job or school or other destinations you visit regularly also helps in reducing the insurance rates as it decreases the miles driven by the car. There is less chance of an accident if the driver doesn't drive his or her car often.
Got a Garage?
If your house has a garage, you can benefit for discounts offered by most insurance companies. This is because there is a smaller chance of theft and vandalism if your car is kept in the garage.
New Family Home
Car insurance companies may decrease the rates if you change your address after getting married. They believe that married couples are more responsible and less likely to be involved in an accident.
Discount with More Insurance Services
It's often possible to save more money on your insurance coverage by buying a multi-policy or multi-car policy plan, home insurance and other types of insurance coverage from the same company. Most insurers offer discount when opting for more of their services.