Do you think you know all the facts about your car insurance rate? Think again. Insurers have a long list of factors that fit into the equation, and one of them may just shock you. Continue reading as we reveal one major thing that might be costing you hundreds on car insurance and what you can do about it.
The Place You Call Home
Believe it or not, one of the most influential factors in determining your car insurance rates is the place you call home. It has nothing to do with your driving record, the type of vehicle you own or anything else that could affect your risk profile. Instead, it has everything to do with geographical risks, such as the likelihood of a natural disaster or the rate of crime in your city.
According to Kiplinger, car insurance rates can double (or likewise, be cut in half) simply by moving across state lines. Of course, the Insurance Information Institute reports that Wisconsin is one of the most affordable states for car insurance in the country, which is good news for Madison area drivers. However, the geographical bias does not stop at the state level. Average rates for similar coverage between two neighboring zip codes has been known to vary more widely than that between two states.
It is also common practice for insurance companies to consider the manner in which you store your vehicle at your own home when generating insurance quotes. If you live in a neighborhood with a high crime rate, for example, parking on the street could yield a higher car insurance rate than parking in your driveway or under a carport. Simply moving your car into your locked garage at night could be enough to net significant savings on car insurance in some locations.
There’s More to the Story
Fortunately, insurance companies typically consider many more factors when determining your insurance rates. Even if you feel like your location is working against you, there are ways of offsetting geographical risk and maximizing your savings. If you understand the general details that most insurance companies analyze when creating your risk profile, you are better equipped to optimize the variables that are within your control and find an insurer who may overlook those which are not. Factors that may affect your Wisconsin car insurance rates include:
- Age (Drivers age 16-25 pay the most for coverage)
- Gender (Women tend to pay less)
- Driving habits
- Vehicle age
- Vehicle safety ratings
- Repair/replacement cost
- A record of traffic offenses
- A record of previous car insurance claims
- A record of late payments
This is only an abbreviated list of details that may affect your car insurance rates. Furthermore, all insurers place different weight on risk variables, meaning a prior speeding ticket may stand out to one company, whereas a fender bender claim could be more serious for another. That is why we here at Homewood Insurance Agency encourage Madison area drivers to request Wisconsin car insurance quotes from multiple carriers when searching for coverage in the state. The average American could save 32 percent on car insurance simply by comparing rates from more than one provider.
Don’t Settle for Paying More
You already know that cutting corners on coverage is no way to find competitive car insurance quotes, but that doesn’t mean you have to settle for expensive rates. Instead, use an independent agency like Homewood Insurance Agency to search for a reputable insurance company that will provide you with a competitive quote despite any derogatory details in your risk profile. For more information or to request your free Wisconsin car insurance quotes, contact our office today. We look forward to serving you soon.
