Cheaper Auto Insurance Rates — Effects Of Your Zip Code
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The fact that a person’s zip code affects his/her auto insurance rate isn’t as apparent as the effect it has on their home owners’ policy. But it does have a huge effect.
Getting a clear understanding of its effect will help you make better decisions when buying a new home: You’ll appreciate that saving a few hundreds on a home might actually cost you thousands in auto insurance premium dollars over the course of a few years. Here are the reasons…
1. The distance of your home from places you frequent is important. It has a great impact on your annual mileage. And we all know the effect of mileage on rates.
A person who lives 15km from his/her office and drives there five days a week will have a mileage that is five times that of another who lives just 3km away. That means more risk to an insurer and higher rates for the insured.
Secondly, the area you live in will determine whether you’ll have access to standard mass transit. Using the mass transit will definitely help you cut down your rate.
2. If your home is in a high crime zone, you’ll definitely get higher rates. This is because you are exposed to a higher risk of theft and vandalism.
So before you get carried away by the few hundreds you may save on one house over another, consider what you might end up paying for auto insurance over the years.
If you’ve already bought a home, take some time to do thorough comparison shopping to locate insurers who are more favorably disposed to your zip code. Their rates will vary from negligibly to widely.
And, if you’re shopping for a home, it will be a smart idea to also compare auto insurance quotes for the different zip codes. Remember, if your zip code adds $250 to your annual auto insurance premium, you’ll pay $5,000 extra over the course of 20 years!
Keep Your Money To Yourself!