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 Do You Park Your Car at Night?
The features of your home can affect your insurance rates as well. If you have a driveway, covered parking or most importantly a garage you will see your rates decrease. This is because your car is better protected from theft or weather damage if it is in off the street or under cover. Conversely, if you have to park on the street then your car is at a higher risk for crime or weather damage and your rates will reflect that risk.
Traffic Patterns and Road Conditions
Because most auto wrecks occur within just a few miles of someone's home, the roads in your neighborhood have a strong bearing on your auto insurance rates. If you live in a part of town that is very busy with many big roads and major intersections, or in a neighborhood with a high incidence of accidents, then you will end up with a higher premium. Check the statistics of your neighborhood before you move so find out how it will affect your rates.
How Many Miles You Drive
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.
Your home address will affect your auto insurance rate, either for the good or the bad. If you are considering a move, think about these things and call your insurance company to see how your premium might change. The most important things that influence your insurance rate is your safe driving - so above all else, practice safe driving habits each time you are in your car. This way, you'll always be saving money on insurance.
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 Do You Park Your Car at Night?
The features of your home can affect your insurance rates as well. If you have a driveway, covered parking or most importantly a garage you will see your rates decrease. This is because your car is better protected from theft or weather damage if it is in off the street or under cover. Conversely, if you have to park on the street then your car is at a higher risk for crime or weather damage and your rates will reflect that risk.
Traffic Patterns and Road Conditions
Because most auto wrecks occur within just a few miles of someone's home, the roads in your neighborhood have a strong bearing on your auto insurance rates. If you live in a part of town that is very busy with many big roads and major intersections, or in a neighborhood with a high incidence of accidents, then you will end up with a higher premium. Check the statistics of your neighborhood before you move so find out how it will affect your rates.
How Many Miles You Drive
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.
Your home address will affect your auto insurance rate, either for the good or the bad. If you are considering a move, think about these things and call your insurance company to see how your premium might change. The most important things that influence your insurance rate is your safe driving - so above all else, practice safe driving habits each time you are in your car. This way, you'll always be saving money on insurance.
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Learn more about Texas auto insurance. Stop by Al boenker Insruance's site where you can find out all about online auto insurance and what it can do for you.