The Relevance Of You Neighborhood From A Car Insurance Company’s Point of View

Your state and zip code tell car insurance companies a lot about drivers in your neighborhood. Find out whether your location increases or decreases your auto insurance rates. Compare online quote auto insurance on our website. Insurance companies take all of the following factors into consideration when determining rates for their policies:

  • increasing-insurance-premiumsNumber of claims in your area:This is kind of a no-brainer, because more claims equal more payouts for insurance carriers–and of course they pass some of that on to their paying customers
  • Population Density where you live:More cars on the road equals a higher potential for accidents
  • Climate and weather:Rough winters with ice and snow as well as hailstorms and floods all translate into higher claims and premiums
  • Crime rates (theft/vandalism):Higher crime rates, especially property crimes like car break-ins, car theft and vandalism, mean higher premiums
  • Unemployment levels:In areas with higher unemployment, more people forgo auto insurance, which means those who have insurance end up paying more when hit by an uninsured motorist
  • Road conditions:Intersections known to be dangerous and potholes that can cause damage also fuel increased insurance costs
  • Availability of public safety services:Cities that enforce traffic laws aggressively and have faster response times are considered safer and therefore less expensive for auto insurance companies than areas that aren’t as safe
  • Litigation activity:If your town or city has a higher-than-average number of attorneys, be prepared to pay more for your car insurance


As you can see, there are many local factors taken into consideration. To make things even more complicated, each company takes into consideration each factor to a different certain degree. For example, for a company would matter more if you live in a high criminality area than in a high unemployment area.

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