Have you ever asked yourself why zip code is always the first requirement when you are looking for auto insurance quotes? Many people think differently and they will give you lots of answers. One thing is sure that it will definitely affect your premium positively or negatively when your insurer will be doing some premium calculations for you.
There are two main reasons for this; one is because it will not make sense if you enter your search and be given quotes from another state. Zip code identifies where you are located in and in this case your state. You will have to know that there are hundreds of insurance companies the USA today and if you won’t identify yourself you will not be given right quotes.
Another reason is to know where you reside since they will want to know more about your area and how security is there. This is because they want to include it in your coverage; if it is a secure place you will get discounts which will lower your premium.
Also they will want to know is the distance from where you are staying to your place of work. For instance if your home is a short distance away you can walk or use the public means which will lower the premium. If you want to drive yourself to work and it is not far then the number of mileage is less and this will help you. This is one of the benefits. Please note that the longer the driving mileage the higher the premiums are likely.
Zip code will tell your insurer where you stay. If it is a populated area you will be affected since such a place is likely to have many accidents. Another thing is that if the area is known in crime and theft your insurer will raise the premium so as to get enough to compensate if the car happen to be stolen or damaged.
There is an option which may help you save. This is by buying a car that has security devices or installing these devices in your car. In insurance industry, there is one thing which doesn’t change at any chance. No matter where you stay and you have a clear driving license you will receive discounts. If you stay in a place where crime rate is zero you will not be charged much to start with.
One thing that you should notice is that you may be staying in the same area with your friend with a difference of one mile but you end up paying more than him. That is why it is important to consider this factor when you are planning to purchase or rent a house.
Apart from that it is also advisable to check on the distance between your home place, where your children go to school and where you work. This is to help in reducing the number of mileage per day. A better option is to live in a place where there is a train. This is because you can be going for shopping and be dropped next to where you stay and you can still use it to travel more than a car. This will also lower the cost of maintenance and fuels since it will not be used often thereby lowering your premium.