New Zip Code In The Same City Made Car Insurance Rates Higher
Q: When I moved to a different zip code in the same city my rates went up, that doesn’t sound right. Is there a reason why my car insurance bill was higher in the same city?
AIS Answer: If nothing had changed on your driving record or coverage’s between policies, then your new zip code is likely the reason for the rate increase.
Location is a very large part of calculating risk, as it’s not just about the individual, instead it’s about the whole picture. Where you lived in a city before you moved likely was a less risky place to insure, where the opposite could be true with where you ended up moving. Only an insurance company can specifically tell you why a certain area or zip code is more expensive to insure vehicles in than another, and rates will vary from company to company.
In 2005 California passed a law disallowing insurance companies from using zip codes to calculate car insurance premiums, although the majority have not fully complied before the July 14th, 2008 date the bill goes into effect.
In the future more states may adopt the practice of excluding insurance companies from using zip codes to base auto insurance rates, but until then be aware that even if you’re moving across town or across the country, a zip code change can raise or lower your rates by hundreds of dollars per year.
Give it a try, get a few car insurance quotes in different zip codes around your city or state and see how much your insurance could go up or down.
Start Your Auto Insurance Quote
Related Articles
Filed under: Auto Insurance Questions
Content contained within AutoInsuranceStories.com is copyright autoinsurancestories.com © 2007. This content is not to be construed as insurance advice. You must always speak with a licensed insurance agent regarding your auto insurance policy.
I switched zip codes on my automobile insurance over 4 different times, and although most of them were techinically different cities like Portland, Canby, Tigard and Tualatin, it’s all pretty much Portland Metro area. Canby which is more rural and farther away from the city of Portland was nearly $200 more every 6 months than Tualatin. I don’t get it.
The New York area has a lot of zip codes, but the rates aren’t inexpensive anywhere.
zip codes for car insurance is NOT unfair. I enjoy paying less because I don’t live in a dense city. I don’t want to have to pay for all of those impatient city drivers that get in accidents and since I don’t live in that area I should be allowed to pay less for car insurance than them.
I have moved all over and unless I’m moving to another state I give the insurance company the zip code with the lowest cost. I put in a mail forward and have my new insurance cards sent to me that way.
NY and especially Manhattan is very expensive to insure a vehicle.
ZIP CODES SHOULDN’T BE USED FOR CAR INSURANCE
always check the zip code when you move or your auto insurance will be a bit of a surprise.