How Your Zip Code Affects Your Rhode Island Auto Insurance Rates

You may not be thinking about your auto insurance rates when you are looking for a new home, but where you live is one of the factors that an insurance company considers when determining how much to charge for coverage.

Moving from the country to a more populated area may mean an increase in rates. The more cars that are on the road, the higher the likelihood that a loss will occur. When setting rates, the insurance company considers the level of risk that an applicant presents. The higher the risk, the more the applicant will pay in premiums.

Insurance companies also track theft rates in different neighborhoods. Living in a higher crime area means paying more for coverage. You may be able to get a better rate if you make a point of keeping your car in a locked garage when it’s not in use; be sure to let the insurer know if this is the case.

Other factors tied into your zip code and Rhode Island auto insurance rates include the amount of traffic on the streets, the number of claims reported in the neighborhood and its demographics (whether it is home to young families, single people, etc.). An area that doesn’t have a lot of traffic means lower insurance costs and living in a place where thefts and acts of vandalism are low also translates to better pricing.