There are many factors that go into a company’s decision on what car insurance prices to offer their customers. In addition to the type of car and driving background of the policy holder, garage location is considered an important aspect. Garage location as an insurance term is simply the primary location of the car and the area where it is typically parked. This location is not anything like whether the driver uses a garage, street or driveway. This location is the zip code where the driver lives because that plays a part in determining car insurance prices. Location does matter when offering car insurance coverage to a person. Accident and vandalism rates vary by location and the higher the rates are in a specific zip code, the more coverage will cost.
Urban areas tend to have higher accident and vandalism rates than suburbs or rural areas. When car insurance companies offer quotes, they have to take into account any cause of damage to a car. Statistics are very important to all insurance companies because they need to know the average costs for any possible situation. Knowing these averages helps them know how much to charge for their services. Knowing how much to charge for services keeps the companies in business and enables them to pay out on policies that require payment. Having an urban garage location will cause a higher car insurance quote.
Rural and suburban zip codes will cost a driver less than an urban one would on their monthly premium. These areas have less vandalism and hit and run accidents, statistically, than the urban areas- decreasing the need for this type of coverage. The garage location is also important because some areas are more dangerous to drive in than others. Certain towns and cities have higher accident rates than others, and since insurance deals in risk management, they need to be aware of the risks. An area with a higher risk means that the insurance company has a higher probability of paying out on a policy. This means that they need to charge more for their services to keep up with the averages.
Since car insurance companies take so much into account when offering quotes, it is important to know what exactly they are looking for. Knowing some things that will cause your policy to increase in price ahead of time gives a driver the opportunity to adjust some areas that will make their policy price decrease. Garage location is just one of the many factors that insurance companies look at. It is a good idea to talk to an insurance agent if you have any questions regarding your policy and options that could reduce your bill.