Can you ever think that just a change in a few blocks to your new shows a 60% difference in your car insurance premium? Did you actually wonder why? Well, just living a few blocks away and to a new neighborhood can cost you big, especially in case of your vehicle insurance premium.
In fact, sometimes just moving from one zip code to another within the same city can have an impact on your claim history, driving record with the same vehicle. But there are definitely ways of reducing the premium.
While many factors have an impact on your premium such as your age, the car model, the driving habit and more, of all zip code makes the biggest impact that you could ever think.
If you compare two or drivers with the all the factors being equal residing in two different zip codes within the same city you can find the difference easily. For instance, a driver might find an 82 percent hike in the premium they pay.
In fact, in California where the zip codes are not actually allowed to be the top priority, the difference would be less. It can be around $900 to about $2400 simply based on the place you live.
When comparing two drivers with the same history, same car model but different zip codes, you would that the zip code determines what you actually pay for the car insurance.
Before you try out methods or ways to reduce the premium rate, you must find out what influences it above all. Interestingly, what you didn’t know is that the insurance rates actually depend on your neighbors. Yes, you have read that right.
In your zip code, factors that increase the rates are:
You might have friends and family who complain of high insurance rates, but has got it reduced when changed the zip. Even if you didn’t bother then, you know now what has actually caused it.
Insurers would never ever tell how they determine the rates, but a little research on your part would help you out. If you wish to reduce the rates, here are some of the things you must follow.
Living in an urban area than a rural area has an impact on the car insurance premium. This is mainly because accidents are frequent in the urban area, making the rates higher.
Next, the rates would depend on the nature of the neighborhood you live in. For instance, homes built in a new neighborhood would have garages thereby reducing the chances of theft. So, if you live in a neighborhood with a garage you wouldn’t have to pay a huge premium for car insurance. On the other hand, having cars parked in the open increases the chance of vandalism and theft, increasing the rates for coverage.
Next, the car insurance also reduces if your zip code has high crime rates, but the neighbors mostly use public transportation than own a vehicle or if the local drivers are less included to file an insurance.
So, you must keep these in mind when shifting you a new zip code.