I relocated and my auto insurance went up. Why?
After calling your auto insurance agent and notifying them of your move they tell you your auto insurance has increased. Below is a short explanation.
When you are initially getting a quote for auto insurance various factors are applied to determining your premium things like age, marital status, driving record, credit score and location.
Insurance companies gather data from many sources including police reports and insurance reports and they determine the statistics for certain zip codes. Some areas are more prone to accidents due to highway access or intersections, while other areas are more likely to have a higher percentage of car theft and break- ins. If you live in the suburbs you might be exposed to hail damage and if you live in the city you will be more likely to have your vehicle dinged by a driver who flees the scene. These are just a few scenarios on why each area has its risks and exposures.
Major companies like Progressive Insurance, Travelers Insurance, and The Hartford all have factors that influence rate based on address. Other smaller companies are following this trend.
Next time you think of moving call your auto insurance agent first and let them check if you are likely to have an increase on your auto insurance because of the area, this way you will be prepared to make your moving decision.
For more information visit www.keepaustininsured.com.