4 Ways Your Address Affects Your Auto Insurance Premiums

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Are you concerned about high auto insurance premiums? One factor you might not realize could be affecting you is actually where you live. In addition to your vehicle, the insurance company will also consider your personal history and your living situation. Here are a few of the major ways in which where you live can raise your auto insurance premiums.

1. Living too Far Away from Work or School

Your auto insurance premiums are often calculated based on mileage. And you can't just underestimate your miles—the auto insurance company will check your car's reported mileage! It's always best to drive less if you want to reduce both your premiums and the chances of getting into an accident. 

2. Living in an Area High in Auto Thefts

If you live in a high crime area, you're more likely to experience damage to your vehicle—or theft of your personal possessions. Of course, it's not as though you can simply move out of a high crime area just to lower your auto insurance premiums. But you should expect a higher premium if you move into an area with higher instances of auto theft. Keep in mind that a high crime area and auto thefts aren't always correlated. You could move to a very affluent area that incidentally has significant property theft problems.

3. Living in a Place Without Secured, Dedicated Parking

Secured property does two things. It makes it less likely someone will hit your car and it will make it less likely someone will steal your car. A car that is stored in secured parking (especially covered parking) will usually need to be repaired less. So if you're looking for a new apartment or home, it's a good idea to look for a property with a garage. 

4. Your Local Laws

Local laws and regulations can also have an impact on your auto insurance premiums. For instance, some areas require that you carry more coverage than others. But it can also affect your premiums in indirect ways; people in your area may be more prone to getting speeding tickets due to additional safe speed laws.

Insurance companies base their premium amounts on the amount of money they are likely to have to pay out, so there are many factors that can go into it. You can lower your auto insurance premiums by shopping around. Many agencies like Smiley Insurance Services are able to compare other coverage options to ensure that you get all of the auto insurance coverage you need at a price that you can afford.