Have you noticed that you are always required to provide your zip code whenever you want to get quotes? Have you ever bothered why something like that is a standard everywhere you turn? The answer isn’t far fetched: It is one of the factors that is used to determine whether you get to pay little or much as premium. It determines whether you’d be eligible for a very affordable auto insurance. Here are ways a person’s place of residence affects his or her rate…
i. If your area has a high crime rate (Especially cases of car theft and vandalism) then you are considered a higher risk than another prospect who lives in an area that has very low incidence of car theft and vandalism.
ii. What is the crash rate of your city of residence? Does it matter? I bet it does. Don’t forget that, sometimes, good drivers get hit by reckless ones.
iii. Also connected to your residence is how far away it is from your workplace. A person who lives 7 kilometers from their office would have to drive a total of 14 kilometers (to and fro) each day. Such a person would definitely accumulate a higher annual mileage count than another who just has to travel a total of 5 kilometers each day.