Your auto insurance premium is calculated based on a myriad of factors. Some of these factors are within your control, such as how many claims you’ve filed, whether you’ve had any lapses in auto insurance coverage and how clean your driving record is. Other factors are outside of your control and are seemingly unrelated to your driving, including your gender, age and whether you own or rent your home.
Your Zip Code Affects Your Auto Insurance Premium
In addition to personal factors, there’s another big variable that plays into your auto insurance premium: your zip code.
When they’re setting your rate, your auto insurance company looks at the claims history within your region. Some geographic regions have a higher volume of claims than others, even within the same city. For that reason, drivers within different areas of a state, or city, or zip codes, can pay different premiums. Someone living in Northern Nevada may pay very different rates than someone living in Southern Nevada, who has the exact same coverage.
Regional Factors that Drive Up Auto Insurance Rates
When it comes to how your zip code affects what you pay for auto insurance coverage, ultimately, it comes down to what types of losses and how many losses your auto insurance company has paid out for in your region. Some common regional rates for auto insurance rates include:
♦ Number of vehicles stolen
♦ Number of property theft claims
♦ Fraudulent injuries claims
♦ Vandalism claims
♦ Natural disasters
It’s important to note that living in an area with low crime doesn’t automatically equal low rates, and living in an area with more crime doesn’t necessarily equal higher rates. For example, if you live in a region that is associated with high crime, but a majority of the region’s residents use public transportation rather than a private vehicle, auto insurance rates might be more affordable. On the other hand, if you live in a region with a lower crime rate but drivers are statistically more likely to file a claim, you may expect higher rates.
How Your Auto Insurer Rates Your Neighborhood
Even within the same zip code, different neighborhoods may have different risk factors. If you live in a neighborhood that only has street or parking garage parking, then your car is more likely to be vandalized or stolen than a car that is parked in a private garage overnight. Additionally, drivers who live in densely populated urban areas are more likely to get into an accident than their rural-dwelling counterparts and may, therefore, pay more for their coverage.
If you move to a new home, it’s important to let your auto insurance agent know. Even if it’s within the same zip code, your monthly premium could change.
Getting the Best Rate with Nevada Insurance Enrollment
Even within the same zip code, different auto insurance companies may offer vastly different rates and coverage options. No matter where you live in the Las Vegas, Nevada, region, Nevada Insurance Enrollment auto insurance agents can help you get the best coverage for your needs at the best rate available to you.
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♦ How Do Auto Insurance Companies Decide Auto Insurance Premiums?
Read More: Auto Insurance in Las Vegas, Nevada
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