How Your Address Affects Your Car Insurance Premiums
Car insurance providers calculate car insurance premiums by considering different rating factors such as the age of the driver, driving record, credit record of the driver, type of vehicle, etc. Address or city where you live is an important rating factor that affects your car insurance premiums. Address affects your insurance premium due to the following reasons:
Claim rates in your area
The number of claim rates in your address affects your insurance premium. If you live in an area where insurance claims rates are high then your car insurance may also be high. Car insurance companies sell car insurance policies at lower rates to the drivers who live in an area where claim rates are low.
Population density of the area
The population density of the area affects your insurance premium. If you live in areas where population density is high then car insurance premiums are also high. The severity of accidents is more in high-density population areas so these areas are considered risky by the auto insurance company. Car insurance providers charge low prices for car insurance policies from the drivers who live in low-density areas. In this manner, your address affects your car insurance premiums.
Geographical and environmental factors
Environmental and geographical factors of your address affect your insurance premium. If you live in areas where winters are long and summer are of short time then car insurance companies sell car insurance policies at higher rates. Chances of accidents on the snow-covered roads are more because of fog or snow. Car insurance companies charge higher car insurance premiums from those drivers who live in the areas affected by the floods, fire, earthquakes, and other natural disasters.
Number of accidents and crimes
The number of accidents and crimes in your address affects your insurance premium. If you live in the areas where cars are stolen more often and the number of accidents is high then car insurance policies may be expensive for you. Car insurance rates are low for those drivers who live in cities where accidents and crime rates are low. Different types of crimes such as auto theft, burglary, vandalism, etc. can affect your car insurance premiums. If crimes are more in your location then you may need to purchase comprehensive coverage to recover the losses caused due to theft.
Unemployment rates of your address
Unemployment rates in your address affect your insurance premium. If you live in an address where most people are unemployed then there may be a high number of people who drive without car insurance policies. Car insurance premiums are high for those drivers who live in areas of highly unemployed areas.
Road conditions in your areas
Road conditions in your address affect your insurance premium. If the condition of roads in your area is not good then you may pay higher car insurance premiums for car insurance policies than the drivers who live in the areas where the condition of the roads is good because there are fewer chances of accidents.
Number of registered vehicles
If you live in an address where most of the vehicles are registered then your car insurance premiums go up. More registered vehicles in your address mean high traffic areas and the severity of accidents is high in these areas.
Number of uninsured drivers in your address
The number of uninsured drivers in your address affects your insurance premium. If you live in an area where maximum drivers drive without having a proper car insurance policy then it will negatively affect your car insurance premiums. If a large number of drivers in your area are not covered under the car insurance policy then you may have to pay higher car insurance premiums.
In some states of the USA, drivers are required to purchase personal injury protection coverage in your car insurance policy to drive legally. Including personal injury protection in your car insurance policy will increase your car insurance premiums.
Car insurance premiums are different for different areas of the USA. Requirements for the basic insurance policy are different in different areas. You can get the cheapest car insurance policy according to your zip code. You can get car insurance quotes according to your address. You can compare different car insurance quotes from different insurance providers according to your address.
MyMoneyMyQuotes helps you to compare free car insurance quotes according to your address.
Other factors to determine car insurance premium
Following are the factors that car insurance companies consider at the time of deciding car insurance premiums:
- Driving history of the driver
- Mileage of your vehicle
- Type of your car
- Credit history.
It is the biggest mistake when you assume that all the companies are the same and provide the same services. You should compare the services offered by different car insurance companies before purchasing the car insurance policy.