Moving can already be expensive, but what if there were a factor that most people did not consider? For example, let's say you and your family decided to quit renting and buy a home. While it exists in the same town two miles to the south, you call your car insurance company to report your new address, and you are informed that your auto insurance will cost a little more because of the move. Why is that?
When it comes to car insurance, we are dealing with sensitive data. In the case above, the likely culprit of a premium hike might relate to the two addresses in two different zip codes. According to a survey from Bankrate, researchers discovered that two addresses even relatively close together can sometimes cause a significant difference in price. It is not, however, the zip code that counts: It is the geographic location. The factors included in the price increase relate to:
As you can see, multiple factors in the zip code will influence your car insurance rates. In contrast to price hikes, rates might also decrease because of the same reasons. For example, let's say you move to a state with lower auto insurance in general. That can lead to hefty savings. If you do not move out of state, you can call your current auto insurance provider to examine quotes in advance.
The rates can sometimes be significant enough that you will not be saving a great deal of money. In some cases, a move of less than two miles can raise your rates from $418 to $524. That is more than a 25 percent increase, and you have moved less than 10 miles.
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