“For any insurance company, the neighborhood where a customer lives is very important. Customers living in good and safe neighborhoods pay less on their premiums, while drivers living in dangerous neighborhoods will pay more on their insurance rates.”, said Russell Rabichev, Marketing Director, IMC
LOS ANGELES (PRWEB) November 02, 2021
Compare-autoinsurance.org has launched a new blog post that explains how the zip code can affect the price of car insurance premiums.
For more info and free quotes, visit https://compare-autoinsurance.org/why-car-insurance-varies-by-zip-code/
Car insurance can help drivers overcome some delicate situations that involve the paying of medical bills, damage claims, and legal expenses. Some drivers get confused when they start comparing their insurance policies with their relatives or friends and they notice the huge differences between them. One of the most important reasons for these differences is the ZIP code.
The ZIP code can help the insurers find out more about the following factors that determine the insurance premiums:
- The number of claims in a certain area. Drivers that live in areas where the number of claims is high, will have to pay more money on their insurance rates.
- Population density. Living in an urban area is usually more expensive. The car insurance premiums paid by those living in high-density urban areas are higher when compared with the premiums paid by drivers that are living in the suburbs.
- Climate. Those who live in areas where the winters are longer and more severe are likely to pay more money on car insurance. Also, higher rates will be paid by drivers that live in areas known to be affected by floods, earthquakes, or tornadoes.
- Crime rates. In some areas, cars are stolen more often or are vandalized. Especially in large port cities, where specialized gangs are known to steal vehicles in order to send them to foreign countries. Also, drivers have higher chances of getting their cars vandalized if they happen to live in large cities.
- Unemployment. In areas where the number of unemployed persons is high, there is also a high number of persons that are driving without insurance. Uninsured drivers who are causing an accident are responsible for large losses suffered by insurance providers. Insurance companies will compensate for that losses by increasing the premiums of their paying customers.
- Road conditions. Living in an area where the roads are filled with potholes will make the insurance costs go up. The same happens if there are any dangerous intersections nearby.
For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.org/
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