How ZIP Code affects your auto insurance rate

A popular question by clients who move from one ZIP Code to another: “Why did my insurance rate change when I moved?”

You would think that an auto Insurance rate is based off of your personal insurance info like how many tickets you have, how old you are, where you work, how far you drive, what type of car you drive etc. Although those factors do come into play when the insurance company decides to give you a rate, they aren’t the only factors.

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Why do auto insurance rates change when you move to another address? There are many factors that come into play when you move from one ZIP Code to another, for example: auto theft and vandalism, traffic accidents, etc. These type of incidents happen a lot more in certain neighborhoods and ZIP Codes.

If you decide to move from the middle of LA or San Francisco to a smaller town with less traffic than you can probably expect your insurance policy premium payments to reduce each month. Places like Los Angeles and San Francisco are known for accidents due to the huge population and congested city streets.

Even the difference between living in an apartment complex or a home can have an effect on your insurance premium. The way most insurance companies see it, you’re less likely to have something happen to your vehicle while it’s left in your garage versus a carport outside your apartment complex.

Next time you decide to move call your insurance agent, you may be in for a pleasant surprise. You might also be in for a rude awakening, it’s up to you.

These are only a few factors that come into play when insurance companies formulate your rate. Get in touch with one of our licensed California insurance brokers today, we’ll shop your policy with multiple insurance companies making sure you’re getting quality coverage at an affordable rate, even at your new zip code.

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