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Why Policyholder’s ZIP Code Is So Important For Car Insurance Companies

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“The Zip code of a driver can tell a lot to an insurance company. Drivers who live in densely populated areas with high crime rates and vandalism will pay more on their monthly premiums”, said Russell Rabichev, Marketing Director of Internet Marketing Company.


LOS ANGELES (PRWEB)

Compare-autoinsurance.org has launched a new blog post that explains why the address of a driver is very important for car insurance companies.

For more info and free quotes, please visit https://compare-autoinsurance.org/the-relevance-of-you-neighborhood-from-a-car-insurance-companys-point-of-view/

The Zipcode of a person that wants to obtain car insurance is very important for car insurance providers. Carriers can find out a lot of information about drivers, just by analyzing the Zip code. Depending on their address, drivers can enjoy paying less on their car insurance premiums or they will have to fork out more money out of their pockets to pay the monthly insurance bill.

Insurers will analyze the next factors to determine the insurance premiums:

  • The number of claims. Policyholders who live in areas where claims are filed more often are going to pay more on their insurance rates. Some of the costs of the claims made in an area are spread across all policyholders, even to those who made no claims.

  • Population density. Areas that have a high population are more likely to have more cars on the roads. If there are many cars on the roads, then the chances for a car crash are increased.

  • Weather and climate. Drivers who live in areas where winters are severe and longer are going to pay more on insurance. Snow and icy roads can increase the likelihood of a car crash. Furthermore, drivers who live in areas prone to flooding or tornadoes will also need to pay more on the monthly insurance.

  • Car theft and vandalism. Usually, drivers who live in the city are more likely to have their cars stolen or vandalized. Also, many cities have a bad neighborhood where cars are stolen and vandalized more often. Drivers who live in that neighborhood will have to pay more on insurance.

  • Unemployment. In areas with high levels of unemployment, the number of uninsured drivers is very high. Drivers who got hit by an uninsured driver will have to pay for the cost of their own medical expenses and the cost to repair their own vehicles, even if they are not at fault. The only way to recover some of the costs is to sue the at-fault uninsured driver.

  • Road conditions. Roads covered by potholes and intersections that are known to be dangerous will also raise the premiums.

  • Availability of public safety services. Drivers who live in cities where traffic laws are aggressively enforced and are considered safer will have to pay less money on their car insurance premiums.

  • The number of lawyers. Car insurance will cost more for drivers who live in cities that have more lawyers than the average city.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

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