How Crime Rate Affects Your Auto Insurance in Lancaster

Why crime rate can affect the cost of your car coverage.

When you apply for auto insurance in Lancaster, California, the insurance company will look at various factors to determine your premiums. One of the things they will consider is the crime rate in the area that you live in. But why do crime rates influence your auto insurance costs? Here’s what you need to know.

Crime Rate by Zip Code

Car insurance providers use your zip code to check the crime rate in your area. This is why they ask you to provide your zip code on your auto insurance quote request form. Insurers are looking for specific, car-related crimes such as the following:

  • Vandalism
  • Break-in
  • Car theft
  • Accident rates
  • Fender benders
  • Hit and runs

How Crime Rates Affect Your Insurance

Auto insurers calculate your rates based on how likely they think you are to file a claim. The more likely they think you are, the higher your rates will be. When you live in an area with high crime rates, auto insurers automatically assume that you are at greater risk for having your car vandalized, stolen, damaged in a hit-and-run, and so on. Because you would file an insurance claim for these issues, auto insurers look to protect themselves by raising your rates.

On the fortunate side, if you live in an area with lower crime rates, then you will access to lower auto insurance rates. This is because the insurer assumes that you are at lower risk of experiencing a claim-related event.

Can I Insure My Car in a Different Zip Code to Save?

Many drivers wonder if they can use a different address when insuring their vehicle. For instance, many use their parents’ address because they live in a safer, less populated parts of town. However, it’s important to understand that falsifying your address is considered insurance fraud. When applying for insurance, you need to use the address where your car is parked most nights of the week. Attempting to use another address will create issues if you need to file an insurance claim. This is because, upon investigation, your insurance company will likely discover that your car is not parked at the provided address the majority of the week. Not only will your insurer deny this claim, but they may even cancel your policy altogether.

This is what you need to know about crime rates and your auto insurance rates. Do you need further assistance with your auto insurance in Lancaster, California? If so, then contact the experts at John E. Peakes Insurance Agency. We are ready to help you with your car coverage today.

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