Zip Code Determines Auto Insurance Rates

Category: Auto Insurance, Blog. Written by Cameron Wong 

When it comes to auto insurance, your zip code is your identity. Just because you live in an expensive downtown loft with with a secure garage doesn’t guarantee lower auto insurance rates.

Insurance companies use a variety of things to determine how much the risk is on a particular policy. Where you live, what kind of car, amount of traffic in the neighborhood, and number of claims within that neighborhood are just some of the things that will determine what certain rates are in a particular zip code.

According to the Northwest Insurance Council:

Insurance companies examine local trends in accident frequency, car thefts, lawsuits, vehicle repairs and the cost of medical care when determining your level of risk.

“We(insurance companies) look at what type of losses are associated in a particular neighborhood,” explains Wilson Hui, an Allstate agent. “Typically in our area, the east side rates will be cheaper than Seattle. Redmond, Sammamish, Bellevue, Issaquah and cities like that, have more families and home owners. And that effects rates.”

Areas which tend to have higher rates are downtown Seattle, Burien, industrial areas like Tukwila and neighborhoods along busy city streets like Rainier avenue and Martin Luther King Blvd.

But by no means are insurance rates locked in and set in stone. Rates based on zip codes can and will change. However, it’s not just the zip code that determines the overall rate. It’s a just a small part of the whole.

These are the most common factors that determine your auto insurance rates

  • Driving Record
  • Number of Miles Driven
  • Where You Live(zip code)
  • Age of the Driver
  • Type of Car Owned
  • Amount of Coverage
  • Credit
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3 Responses to “Zip Code Determines Auto Insurance Rates”

  1. jovan on May 22nd, 2012 12:43 pm

    I need to know how much is my insurance going to cost me per mount for an old honda prelude 94 i am from europe i ll be lining there in seattle this summer

  2. live6 on January 24th, 2015 1:29 am

    Ӏch will auch so klug sein, wie die die das verfassen

  3. Pusat Jagaan on March 18th, 2018 9:44 pm

    Thanks for the article. Interesting read and what I’m searching for.

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