Reader’s Question:

Does insurance companies determine your vehicle insurance policy rates with your zip code?

Martha

Los Angeles CA

It will actually depend on which state you live and the rating system of the car insurance company however typically the place where you garaged your car is being considered when they determine your vehicle insurance policy rates.

It is very helpful for car insurance companies to know where you garage your car because they need that information to determine your risk. If you live in an area where there is a high claims history and accident rates, typically your vehicle insurance rates will be higher compared to someone who garaged their vehicle in a safe place with low traffic density. So if you live in Los Angles or New York City for example, you will pay higher premiums than policyholders that live in rural area.

So if you really want to get a lower vehicle insurance rates, you have an option to move. Keeping a good driving record and shopping around for the best car insurance deal is the best way to get low vehicle insurance policy rate.