Believe it or not your zip code directly affects your insurance premium. Why? Because where you live determines the likelihood of a car accident or other reason for an auto claim and what that claim might cost. The higher the chance of a claim the more the insurance company needs to charge to accommodate for this future event.
For starters, urban residents typically pay higher rates than people who live in rural areas. This is because the chances of accident occurring in a densely urban population is much higher than a rural area.
Insurance companies then look closely at your zip code to determine risk. What they look at includes:
Weather: Insurance companies will take things like snow, hurricanes, and tornadoes into consideration. If you live in Florida or Oklahoma, for example, you may pay a higher premium than if you live in Arizona.
Crime: Is there a lot of crime in your zip code? If so, you could very well see higher insurance rates. Auto theft and vandalism are serious crimes that raise rates.
Local roads: How are the roads in your area? Are they full of pot holes or are they evenly paved? The road conditions in your zip code affects the likelihood of an accident. If roads are riddles with potholes, the chances of an accident increase and it is the job of the insurance company to know this.
At E.S.T.I.R. Inc. we understand how insurance works. Our experienced agents work with customers in the Newark, NJ area to get the most affordable auto insurance for the best coverage. To talk about a new auto insurance policy in Newark, NJ call E.S.T.I.R. Inc. today to get started.