Is your zip code affecting your car insurance
Its indeed a fact that your zip code is playing a huge and significant role in determining your car insurance premiums in the U.S. Whit the help of geographic location the insurers will be able to calculate the risk of things to happen, or even accidents to occur. Other things that your zip code is telling the insurance companies, if you live in a high population area, are there huge traffic, or is the accident rates higher in your area.
If there would be more drivers on the road at your area there could be bigger likelihood of accidents to happen, and this is what insurers uses to adjust premiums, to calculate the risks. The zip code also reveals if you live in a area where there are a huge part of car theft or vandalism that could lead to you need to use your insurance claims. It could be very costly for the insurance company who would use these costs to the policyholders.
If you live in a neighborhood that have breakins very often then your insurance will indeed be higher then it could in another area, and thats because the potential risk of breakins or theft. Even the weather is a big factor, regions that are subjects to natural disasters, hurricanes, floods, or even hailstorms are known to often have higher insurance rates
When agreeing to your premiums the insurers have to consider the cost of what it would cost to repair damages due to the weather. Just by understanding that how your location it could help you to understand why your insurance premium is the way it is.
And if you are going to move, you need to shop for more and better insurance rates in the area that you are going to live in, and that could save you a lot of money if you are lucky.
But there is still some ways to a young driver trying to save money based on safe driving programs and other options even if your zip code indeed might be a risk factor. So if you would understand the roll of the zip code you could take actions to lower the premium if you need to.