Maybe you noticed the last time that you moved that your auto insurance rate changed. Have you ever wondered why that is? Well, it turns out that your home address has a major impact on the auto insurance rate you will receive. Sometimes a move from one city, state or neighborhood to another is a good thing and you receive insurance discounts based on your address, and sometimes it hurts you and you find your monthly premium on the rise when you change locations. So why does this happen? What does your address have to do with your auto insurance premium anyways? These are a few major factors auto insurance companies use to determine your rate based on your location:
The Neighborhood
The biggest way that your address will impact your insurance premiums rates is the safety of your neighborhood. If there are high crime rated and a high rate of car or home break-ins or theft then you are a higher risk to your insurance company and your rates will reflect that risk. On the other hand, if you live in a gated community that is protected from outsiders, or even if your neighborhood has a well established and respected neighborhood watch, you can see discounts on your premium.
Where You Park Your Car
Your actual house can also have a big impact on your insurance rates. Most importantly, whether or not your house has a garage or another type of protective parking for your vehicle has a big effect on insurance rates. If you have to park your car on the street where there is a higher chance of crime or weather damage, you will more likely to pay more.
The Neighborhood Streets
Many car accidents happen within just a couple of miles of the home, so if your address is located in an area that is known to be an accident hotspot, this cost will be reflected in your insurance policy. This can be especially true if the area you live in is next to a highway or on a particularly busy street as it can make accidents more likely to happen. Conversely, if you were to move to a quieter area with a well-managed traffic system, you may see lower insurance rates.
Length of Your Commute
The distance you drive each day is a major factor in determining your insurance rates. If you have to commute a long distance during rush hour each day, your chances of being in an accident or receiving a moving violation only increase. This means higher rates. On the other hand, if you don't drive much or live in an area where you can and will walk or use public transportation, you will receive discounts on your policy usually. Living closer to your job and school are always a good idea and will always save you some money.
You can see that where you live has a major impact on your auto insurance rates. The most important thing you can do to ensure that you are getting a good deal on car insurance though is to be a safe driver and to foster safe driving habits every time you get behind the wheel. This way, even if you move to a more expensive insurance part of town you can still save money.
The Neighborhood
The biggest way that your address will impact your insurance premiums rates is the safety of your neighborhood. If there are high crime rated and a high rate of car or home break-ins or theft then you are a higher risk to your insurance company and your rates will reflect that risk. On the other hand, if you live in a gated community that is protected from outsiders, or even if your neighborhood has a well established and respected neighborhood watch, you can see discounts on your premium.
Where You Park Your Car
Your actual house can also have a big impact on your insurance rates. Most importantly, whether or not your house has a garage or another type of protective parking for your vehicle has a big effect on insurance rates. If you have to park your car on the street where there is a higher chance of crime or weather damage, you will more likely to pay more.
The Neighborhood Streets
Many car accidents happen within just a couple of miles of the home, so if your address is located in an area that is known to be an accident hotspot, this cost will be reflected in your insurance policy. This can be especially true if the area you live in is next to a highway or on a particularly busy street as it can make accidents more likely to happen. Conversely, if you were to move to a quieter area with a well-managed traffic system, you may see lower insurance rates.
Length of Your Commute
The distance you drive each day is a major factor in determining your insurance rates. If you have to commute a long distance during rush hour each day, your chances of being in an accident or receiving a moving violation only increase. This means higher rates. On the other hand, if you don't drive much or live in an area where you can and will walk or use public transportation, you will receive discounts on your policy usually. Living closer to your job and school are always a good idea and will always save you some money.
You can see that where you live has a major impact on your auto insurance rates. The most important thing you can do to ensure that you are getting a good deal on car insurance though is to be a safe driver and to foster safe driving habits every time you get behind the wheel. This way, even if you move to a more expensive insurance part of town you can still save money.
About the Author:
Want to find out more about Texas auto insurance, or do you need online auto insurance? For more information visit Al Boenker Insurance at www.thanksal.com.
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