Why Your Area’s Crime Rate Affects Your Car Insurance Costs

Why Your Area’s Crime Rate Affects Your Car Insurance Costs

How crime rate influences your auto insurance costs.

When insurance companies calculate your auto insurance rates, they will take a variety of factors into account.  One thing that you may be surprised to know is that your area’s crime rate is one of the factors that affects your cost.  But what do crime rates have to do with your auto insurance?  Here’s what you need to know.

  • How Crime Rates Affect Your Insurance

Auto insurers calculate your rates based on how likely they think you are to file a claim.  The more likely they think you are, the higher your rates will be.  When you live in an area with high crime rates, auto insurers automatically assume that you are at greater risk for having your car vandalized, stolen, damaged in a hit-and-run, and so on.  Because you would file an insurance claim for these issues, auto insurers look to protect themselves by raising your rates.

On a positive note, if you live in an area with lower crime rates, then you will have access to lower auto insurance rates.  This is because the insurer assumes that you are at lower risk for experiencing a claim-related event.

  • Can I Insure My Car in a Different Zip Code to Save?

Many drivers wonder if they can use a different address when insuring their vehicle.  For instance, many use their parents’ address because they live in a safer, less populated, better part of town.  However, it’s important to understand that falsifying your address is considered insurance fraud.  When applying for insurance, you need to use the address where your car is parked most nights of the week.  Attempting to use another address will create issues if you need to file an insurance claim.  This is because, upon investigation, your insurance company will likely discover that your car is not parked at the provided address the majority of the week.  Not only will your insurer deny this claim, but they may even cancel your policy altogether.

This is what you need to know about crime rates and your auto insurance rates.  Do you need further assistance with your auto insurance needs?  If so, then contact the experts at Steve Wilk Insurance.  Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.