26 Sep Does Crime Rate Impact Auto Insurance?
What you should know about local crime rates and your auto insurance.
Many motorists are surprised to discover that the local crime rate can significantly impact their auto insurance premiums. While the insurer does look at your car’s make, model, and safety when determining your premiums, they will also consider your ZIP code’s crime rate. Quite simply, if you live in an area where crime is rife, your premiums will increase.
Insurance agencies, when determining your auto insurance premium, will look at how likely it is that you file a claim. Insurance companies will look at your vehicle, driving record, demographic data, and your ZIP code. Your ZIP code may have high rates of crime-related car insurance claims including:
- Accident rates
- Car theft
- Fender benders
- Hit and runs
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 crime rates are more likely to occur, you can expect your premium to increase.
Because of this, you may be tempted to list your vehicle under a different, safer address to save money on insurance. Unfortunately, this is considered insurance fraud. Your vehicle’s insurance documentation needs to list the address where your vehicle is parked most nights of the week. If you use a different ZIP code, you may face problems when making an insurance claim. You could even risk having your claim denied.
When you need helping finding and securing the right auto insurance for your needs, contact Dougherty Insurance. We offer unparalleled auto insurance in Illinois, Wisconsin, and Indiana.