Why Car Insurance May Be Cheaper After A Move

Everyone who drives a car is looking for cheaper car insurance, and a company that is more effective when it comes to dealing with accidents and claims. Auto insurance rates are a source of great frustration to Americans, many of who feel like they have done everything in their power to make themselves attractive to an auto insurance provider and yet still receive high rates and poor service. While there are a host of factors that influence auto insurance rates, most of these are in the control of the driver to change – how they drive, what kind of car they drive, where they drive, and who they let drive their car. However, there are a number, such as the location in which the driver and policyholder lives, that can affect car insurance no matter how safe the driver of the car is.

This is because insurance companies operate under the principle of risk. More accurately, they want to minimize their risk to maximize their profit gain. Any situation that puts them in a position to potentially lose money means that they will increase auto insurance rates to compensate. When it comes to location, this can be because the area sees a high rate of vehicle thefts, or because the storage of the vehicle is simply on a street rather than a garage or underground garage. New, expensive vehicles that are left unattended in bad neighborhoods represent risk, which in turns limits an owner’s ability to get cheaper car insurance for their vehicles.

It is for this reason that car insurance can often be cheaper after a move to a new neighborhood, one that is friendlier to cars. This neighborhood can include things like a house with a locked garage or condo with a gated parking lot, as well as a high number of young families and children combined with a low number of auto thefts and robberies. Often, these types of neighborhoods are found in the suburbs or in small “bedroom communities” outside of the center of a city. These neighborhoods will have less chance of vandalism to a vehicle or theft, resulting in a far cheaper car insurance rate for owners even if all they have done is move, rather than change driving habits or cars.

Often, it is situations beyond an owner’s control that increase their auto insurance rates. If this occurs, simply call the provider and ask why. In some cases, a minor fix may be all that is needed, while in others a move may be something that helps to mitigate the cost of car insurance for customers.

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