October 31, 2010

How Garaging Location Can Affect Auto Insurance Rates

When a driver fills out an online form for an auto insurance quote, he or she will notice a wide variety of questions that may seem to have only a tangential relationship with car insurance. For instance, online auto insurance quotes will typically ask for information about a driver's garaging location. The location where a driver parks his or her car can affect auto insurance premiums significantly, especially if he or she is paying for comprehensive coverage. Understanding why this is can help you to control your auto insurance premiums by picking a smart, safe garaging location that decreases the risk of a claim.

There are two main reasons that auto insurance companies are interested in the garaging locations of their drivers. The first is that the chances of auto theft are higher in some locations than they would be in other types of locations. If you regularly park in a locked garage or a monitored parking lot, you will stand a much lower chance of having your car stolen than if you park on the street. Likewise, parking your car on certain streets is safer than on other streets for avoiding auto theft. The second reason that insurance companies care about garaging location is that environmental damage is more likely for drivers who park on the street, especially in certain parts of the country.

Your auto insurance quote will always change with varying garaging locations, but the extent of this change may be more dramatic if you live in an area with a high amount of crime or occasionally harsh weather. Parking on the street is not a good idea in a city with high theft rates, but there are steps that you can take to limit your insurance quote if you cannot find any way around street parking. Many drivers decide to install passive alarm systems, for instance, which can sometimes dramatically decrease the cost of car insurance premiums. Installing other types of anti-theft devices can lead to insurance discounts as well. Utilizing these discounts is a great way to overcome the harsh penalties that a driver could take on from a public garaging location.

Regardless of where you park your car, you should know how your garaging location affects your auto insurance quote. You can find out more information about your garaging location and your insurance premiums by speaking to your insurance agent or by looking online for auto insurance quotes. Looking for quotes will teach you about insurance while helping to manage your policy. This is a great way to see if you are being unfairly penalized for your car garaging location and if you are getting a fair rate on your auto insurance premiums.