Auto insurance rates vary considerably across the country and even among cities within the same state. The garaging location of the insured vehicle may play a major role in the cost of the auto insurance. If a vehicle is garaged in a location that is deemed to have safe parking, the insurance premiums will be lower than those for policies on vehicles that have a garaging location that is considered unsafe or more at risk.
The garaging location is the place where the insured vehicle typically is parked for the majority of the time. This would normally be considered to be the place where the owner of the vehicle resides. If your vehicle is kept in a town or location outside of your home zip code, you need to inform your insurance carrier of that fact because it may have an effect on the policy premiums. This term does not necessarily mean that the car must be parked in a garage or closed parking area. It usually just refers to the location where the car is parked.
Although the garaging location may seem unimportant, insurers have realized that it does play a role in the overall expenditures that they have to make for claims. Theft, vandalism, hit and runs, natural disasters, and other accidents often occur while a vehicle is parked for an extended period of time or overnight.
If the vehicle is parked in what is deemed a safe parking area, it is less likely to incur loss or damage so the policy owner receives the benefits of this through lower policy premiums. Although it is not always the case, whether or not the vehicle is parked inside a closed parking area or garage may have an effect on the overall premium cost as well. Some types of vehicle are often required by insurers to be garaged in a closed garage. This is usually the case for classic cars. Insurance carriers may refuse to cover these types of vehicles unless they have a safe parking location inside a garage.
Although this is a general explanation of the importance and definition of garaging location, it is always best to review your policy closely to understand what things are pertinent to your specific coverage. Look for a definition of terms like garaging location in your own personal vehicle insurance policy and be sure to contact your agent if you have any questions or concerns about this or any other aspect of your auto insurance policy. It is always important to completely understand the terms of your coverage before any situation arises that may require you to file a claim against the policy.