February 13, 2012

How Theft Statistics Affect Your Auto Insurance Quotes

Many factors go into the cost of car insurance that many people may not think about. Studies show that the number of car accidents is up from only a few years ago. Additionally, more teens are hitting the road, which makes insurance companies take on more risk since younger drivers tend to drive more reckless than older, more experienced drivers. Other factors also come into play when it comes to auto insurance quotes and auto insurance costs such as the neighborhood a policyholder lives in, where they park their car, and more. Where a policyholder lives actually affects overall auto insurance costs more than many know. This is tied into the theft statistics for the area in which the car will be parked - at home or at work.

Many auto insurance quotes will take a few factors into consideration before determining what the monthly premiums will be for a prospective policyholder. The area in which one lives and the areas in which the car will be parked are two of the most important. Car insurance companies weigh different risk factors for payouts in order to determine a monthly premium. The more risk they take on, the higher the costs will be. Insurance companies know that if the area a driver lives in has a high rate of theft and vandalism, the chances of their policyholder's car being a victim is fairly high. As a result, the premiums will be higher for that driver.

This is not to say that just because someone lives in a high theft area their care will necessarily be a target. The high risk factor can be targeted to anyone who even parks their car in a high theft area. If, for example, a driver lives in a nice neighborhood where theft statistics are low but they work in a high theft statistical area, that still puts them at risk for damage, theft or vandalism. Car insurance companies take this into consideration when determining premiums. This is why they ask about home and work situations. In order to cover themselves from multiple claims and multiple payouts, they have to raise the monthly premium.

However, if the policyholder were to take precautionary measures such as a high level security system for their car or paying to park in a monitored garage, the rate comes down. Anything a driver can do to lower their risk of being a victim even in statistically high theft areas, the lower their premium will be.

It may be important to look at the theft statistics in one's neighborhood and work location before looking for auto insurance quotes. This way, they can be prepared for high monthly premiums in case.