April 4, 2010

Ways The Area You Live In May Affect Any Auto Insurance Quote

When it comes to auto insurance, zip codes are important. Car insurance providers use statistics heavily when deciding premiums and many of these statistics are centered around where a driver lives and parks. As such, regardless of the policy or amount of coverage you’re buying, your auto insurance rates are certainly influenced by your zip code. Understanding a bit more about this correlation can be extremely helpful when considering different quotes, as it allows motorists to lower their potential risk factors and find cheaper car insurance.

The biggest effect of a driver’s zip code on his or her auto insurance quote is due to theft rates in a given area. Drivers who pay for comprehensive coverage often pay for theft protection, and if theft rates in a certain area are exceptionally high, the chances of a theft-related claim will also be high; as such, the cost of insurance increases. This increase is significant, since car theft causes such a large claim. Drivers can combat this increase in a number of ways, for instance, by installing a car alarm (which has a major effect on the likelihood of car theft). Parking in an enclosed garage can also help to keep your insurance rates down. Be sure to find out auto theft rates for your area, and if necessary, be willing to take action to limit the effects of car theft on your policy.

The number of accidents in a zip code can also affect your insurance rates. High-traffic areas often have more car insurance claims per capita than rural areas, and if this is the case in your city, you’re probably already paying for the difference. However, insurance companies are very fair, and don’t penalize safe drivers unnecessarily, so the best way to avoid high auto insurance rates in high traffic areas is to keep a clean record. If you’ve already received a traffic citation or you’ve made claims on your policy, try driving a safer vehicle or taking a defensive driving course to keep costs down.

When you look online for auto insurance quotes, be sure to do a bit of research on how your zip code will affect your premiums. Collect quotes from several insurers, and see which types of coverage cost the most in your area. You can then contact an insurance agent for tips on keeping your risks down, which will help you to avoid overpaying. Remember, every driver is capable of finding a low auto insurance premium, and regardless of where you drive, you simply need to compare several policies to find affordable coverage that works for you. Your zip code does not have to mean the end of low auto insurance for you.