When you call an auto insurance company for a quote for coverage on your vehicle, they will want to know a lot of details about you. One of the details they will ask about is your address. Did you realize that the place in which you live can affect the rates you pay for auto insurance? Your location affects your rates for a number of reasons, and here are several things to understand about this.
Insurance rates are based on statistical information
When the company calculates a quote for your auto insurance, part of the quote is calculated from information directly related to you, but the other part is made up of statistical information. Your age, gender, and driving record, for example, are factors that are directly related to you that can affect your rates.
Your location, or address, is one of the factors that involves statistical information that will affect your rates. There are many other factors that come from statistics that can also affect your rates. The purpose of using statistical information is so the insurance company can determine the level of risk you have in case you may file a claim against them.
Ways your location will affect your rates
The address of your home can either help lower your rates or increase them. If you live in an area that has very little crime, for example, you will pay a lower rate than a person would if the area had a high crime rate. In addition, statistical information shows insurance companies what areas have higher rates of claims. If your zip code, for example, has a really high rate of auto insurance claims, you will pay more for your insurance coverage. Your insurance company will also look at statistical information relating to the weather in your area and the road conditions.
Insurance companies also know what states have higher risks for accidents and claims. Because of this, you will pay more for insurance coverage simply because of the state you live in. Florida is one state that is known for having higher rates on car insurance, and this is because there are high rates of claims in this state.
There is not a lot you can do about where you live, which is why you should make sure you do everything you can do to keep your driving record clean. If you would like an auto insurance quote, contact an insurance agency like Clifford P Beauvais Insurance Agency and request one.