When configuring your car insurance premium, insurance companies take into account the rate of theft and vandalism in your ZIP code. Fortunately, as this article outlines, you do have a few options at your disposal when you're trying to lower car insurance premiums if you live in an area with a higher crime rate.
Crimes That Can Affect Your Car Insurance Premiums
Search sites such as CityProtect
, NeighborhoodScout
, and SpotCrime
to determine the crime rate in an area you might move to. Some of the crimes that car insurance companies take into account when figuring out premiums for high-crime areas include: Burglaries: Burglary can occur when someone breaks into your vehicle to steal items such as a car stereo, personal belongings, or any other items that your vehicle contains.
Fraud: Insurance fraud happens anytime a car owner makes a false claim on their insurance policy.
Theft: Areas with a lot of stolen vehicles tend to tout higher insurance premiums. This problem becomes even greater if you own a frequently stolen car such as a Honda, Toyota, or full-size pickup.
Vandalism: Acts of vandalism include damage to your vehicle, such as a hit-and-run, a broken window, or graffiti on your car.
Most and Least Expensive Areas to Live in
High-crime areas in the U.S. are usually locations with large populations. Other places that exhibit a high crime rate include areas where drug-related offenses have become a problem.
The following two charts from Leavitt Group
show the most and least expensive areas in the U.S. for car insurance premiums due to high or low crime rates. | |
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| Philadelphia, Pennsylvania |
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| Lake Havasu City, Arizona |
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Choose the right make and model: When buying a car, avoid those on the list of the most stolen vehicles in the U.S. The makes and models beloved by thieves include:
Chevrolet full-size pickup
Compare options: When looking for car insurance, make sure to shop around at different companies to get a better deal. Getting a few quotes
from a few different companies can help you save on your premiums, especially when it comes to comprehensive coverage, which represents the type of insurance that covers vandalism, vehicle break-ins, and vehicle thefts. Living in an area with a high-crime rate can cost you when it comes to your car insurance premium. Luckily, you can take these steps to help reduce how much you pay.