Crime Rates and Auto Insurance

How your crime rate affects the cost of your car coverage.police car with flashing lights

When your auto insurer calculates your rates, they will take various factors into account.  One of the things they will look at is the crime rate of the area that you live in.  But why does this matter to your insurance provider?  Here’s how the crime rate influences auto insurance costs.

Crime Rate by Zip Code

Car insurance providers use your zip code to check up on the crime rate in your area.  This is why they ask you to provide your zip code on your 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 have access to lower auto insurance rates.  This is because the insurer assumes that you are at lower risk of experiencing a claim-related event.

This is what you need to know about crime rates and their effect on your auto insurance costs.  Do you have further questions about your auto insurance?  If so, then contact the experts at Desert Empire Insurance.  We are ready to assist you with all your car coverage needs today.

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