Cheaper Auto Insurance Rates — Effects Of Your Zip Code
Does your zip code affect your auto insurance rate? Yes, it does affect it. It’s just that most people don’t know this.
Getting this clear is important especially when you’re about to buy or rent a new home. What you might save in buying a home in a certain location might become totally insignificant when compared with the extra you pay for an auto policy. Let’s see why…
1. The distance of your home from places you frequent is important. It has a great impact on your annual mileage. And we all know the effect of mileage on rates.
Take your place of work as an example: If your home is 10 Km from your office and you drive there five days a week, you’ll accumulate twice as much mileage as your neighbor whose office is just 5km away.
Furthermore, living in a city that does NOT have a standard mass transit system will force you to drive more often. Apart from the fact that this will raise your mileage, it will also increase wear and tear which in turn will have an impact on your auto insurance rate (at least in the near future).
2. What do you think an insurer would do if police records show that your area is prone to crimes like car theft and vandalism? They’ll certainly factor this in when calculating your car insurance rate.
This simply means that taking some time to calculate the effect of house A and B on your auto insurance rate is very important if you’re about buying a new home. You might save a few hundred dollars on a house only to pay a lot more in auto insurance premium dollars over 20 or more years.
What if you’re NOT about buying a new home? Thorough comparison shopping will show you insurers who factor this less than others when calculating your rate. This will you help you find cheaper rates.
To avoid wasting thousands of dollars in auto insurance premiums over many years, get and compare quotes with zip codes of neighborhoods you’re interested in. The results will help you make a more informed choice.
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This entry was posted on Thursday, August 21st, 2008 at 11:21 am and is filed under Auto Insurance Quotes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.