Crime rate and its influence on your car insurance premium.
Insurance companies have a number of factors to consider when determining your home insurance rate. Much of your monthly premiums will come down to your personal history, vehicle make and model. What many motorists forget is that their ZIP code is taken into account when insurers are determining premiums. The location of your car (at least, where it is parked overnight) will play a large role in calculating costs.
If you live in an area where there is a high crime rate, you can expect to see higher auto insurance premiums than those in safer neighborhoods. Higher crime, such as theft and vandalism of cars, means that there is a higher chance of you having a to file an auto insurance claim. Since insurers deal with risk, if there is a greater risk, you can expect there will be a higher premium.
If you live in an area where there are frequent break-ins, it could be financially beneficial to reconfigure your insurance policy with a higher deductible. Although you will be paying more out-of-pocket in the event of a claim, you can save money every month through a cheaper premium. It’s important to note that if you do end up filing claims under this strategy, you might be in for a rate hike in the future. The more claims you file, the more of a risk you are, thus leading to an uptick in monthly premiums to cover the cost of your damages.