Car Insurance Los Angeles CA
Filed under: Los Angeles car insurance, SR22 insurance quotes
Reader’s Question:
Is it true that part of my insurance premium is based on my address and zip code location of the car? I live in Los Angeles, CA.
Jim
Los Angeles, CA
It will depend upon state laws and insurance carrier’s guidelines and rating system but where it is allowable insurance company do typically include the “garaged” location of the car as one of their rating factors of your premium.
In many states where you live helps insurance companies assess your risk for accidents. Your Zip Code and its loss history (which includes factors such as your area’s claims history,number of drivers and crime rate,) help determine your car insurance rate. This is the reason why motorists in large cities like Los Angeles and New York City have to pay higher car insurance premiums than motorists in rural areas.
Most states allow zip code rating however only as a secondary factor. For instance in California Proposition 103, the sweeping 1988 insurance reform initiative, requires that insurance providers count a driver’s driving safety record, years of driving experience, and miles driven annually, more than any other factor, including the ZIP-code, when they set auto insurance rate.
Loading ...