burglar smashing a car window

How claims in your ZIP code impact your car insurance rate.

When your auto insurer determines how much premium you should pay, they consider a lot of factors. Many motorists don’t realize that the claims in their local area impacts their auto insurance rate significantly. In short, the more claims in your ZIP code area, the higher the premiums you can expect to pay.

Your ZIP code may have high rates of car insurance claims, including:

  • Vandalism
  • Break-ins
  • Accident rates
  • Car theft
  • Fender benders
  • Hit and runs
  • Deer claims

All of these factors impact insurance premiums. Insurance companies want to limit the number of claims they pay out as much as possible. If you live in an area where these incidents listed above are more likely to occur, then insurance companies are more likely to have to pay out.

If you live in an area where the claim rate is high, you may be tempted to list your vehicle under a different address in order to save money, such as a work or friend’s house address. However, unless your vehicle is parked there overnight, this would be considered insurance fraud. If you needed to file a claim and your insurer found out, they could deny to pay out the claim. 

Do you have more questions regarding your auto insurance? Let the team at Sausman Insurance Agency help you find reliable coverage.