The Effect of Crime Rate on Your Car Insurance

How the local crime rate affects the cost of your auto insurance.thief casing car

Your auto insurance premiums are dependent on a variety of factors.  One thing that affects your rate is the crime in your area.  But why does crime rate affect the cost of your car insurance?  Here’s what you need to know.

  • Crime Rate and Your Auto 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, you are at greater risk of 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 the fortunate side, 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 of 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.  As a result, your insurer may deny your claim and could 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 VGW Walker Insurance in Texas.  We are ready to help you with your car coverage today.

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