Discount Auto Insurance By Zip Code

Discount Auto Insurance By Zip Code

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by Joseph Welusz

Why does your zip code impact your auto insurance rate? 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 hundred on a home might actually cost you thousands in auto insurance premium over the course of a few years.

Here are a few of the reasons.

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Your new home’s location will largely determine your automobile mileage in a number of ways. If you live far from the places you frequently go to you will accumulate higher mileage. Take your place of employment for example: If your home is 20 miles from your place of employment and you drive there five days a week, you’ll accumulate four times as much mileage as your neighbor whose office is just 5 miles away.

The area you live in will determine whether you’ll have access to standard public transit. Using public transit will definitely help you cut down your rate.

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If your place of residence has a high crime rate, this will be a major factor in determining your auto insurance rates. The reason for this is your area’s crime rate will affect your risk of vandalism and theft.

So the next time you’re moving, take some time out to calculate these issues. The little bit you save on your home might be totally negated by the higher auto insurance costs you have incurred.

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Also, take some time to do thorough comparison shopping to locate insurers who offer better rates for the area you are moving to. Different insurance company’s rates may vary drastically.

Remember when you’re shopping for a home; get auto insurance quotes to compare for the different zip codes you are interested in. If your zip code adds $300 to your annual auto insurance costs, you’ll pay an extra $6,000 over the course of 20 years!

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