Select your next home wisely. Your cost for insurance is impacted by the zip code you live in.
The state you live in, the town, even the zip code can be impactful. It might help or hurt you when it comes to the rating for different types of insurance policies. Factors such as population density, theft statistics and the amount of snowfall may very well affect the number of claims your insurance provider expects to pay. Because of that these factors might make a huge difference in the amount you pay for your insurance plans.
The types of coverage most affected by your location include:
Auto and Truck insurance
Real estate insurance
Renters insurance
Health Care insurance
Car and Truck Insurance
As a general rule there are more vehicle accidents in towns where there are more vehicles and people per square mile. More cars and trucks, means more cars and trucks, to hit you and more vehicles, that could crash into you. What this means is the car and truck insurer has to write more checks for claims and the rest of us pay more for our plans. The crime rate, including the rate of vandalism and auto thefts per capita also has an impact. Severe weather, means more automobile accidents and higher insurance costs also.
House insurance
House coverage is also affected by the weather. People who live in areas that are in hurricane zones are really hurt by this. Other weather events have an impact on insurance prices as well. Snow, wind and high temperatures cause more claims and also higher costs for coverage.
The cost of construction in a given neighborhood is yet another factor that makes prices for insurance go upward or downward. If building materials have higher prices or the cost of labor is higher in your town when compared to the one next door, your prices may be much higher.
Apartment insurance
The crime rate could make a huge difference in what we pay to cover our rented homes. Theft is one of the major things that an apartment renters insurance policy protects us against and therefore if there are more break ins in your town your apartment renters insurer may pass those higher prices on to you and other policy holders.
Medical insurance
The location of your home has less to do with the frequency of hospital or doctor visits than it has to do with the cost of that treatment. The cost to set a leg in a small hamlet in Oregon will be much lower than the cost to set the same broken bone in Los Angeles, California. When physicians and hospitals cost more, insurance companys charge more and we pay more to the carriers. We can expect that insurers will charge the residents of the pricier city a much higher rate because of this.
What to Do?
Of course no one expects you to move solely based on the size of your insurance premiums. However, when you re looking for a new place to residence, you should take this into account along with the other issues you and your spouse would generally consider about when selecting your next home.
Tell your story to an agent who works with people in an town that you are considering moving to and ask him or her to estimate costs for different insurance plans. The insurance lines ones that are most affected by geography are vehicle, homeowners, renters and health insurance.
Usually, a more expensive home will be associated with lower insurance premiums. This can mean that you can afford the overall costs of a live in a better area.
Author Resource:
Alston J. Balkcom has been in insurance agent for over 2 decades.
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