It may seem like a simple part of the process of applying for auto insurance online, you enter your address so they can send you things, right? Well there may be more to that than you think because your address could have a direct impact on the rates that you will pay for your auto insurance. Your neighborhood and the surrounding areas could affect your rates in a way that you have no control of, unless of course you want to move to a different area.
Here is the basic idea: most insurance companies refer to your address as your “garaging address” in that your vehicle is garaged at this address. This term doesn’t necessarily mean you have a garage or that you keep your car in one, instead, it means that you keep your car at this address when you aren’t driving it somewhere else. So this is where your vehicle sits when it is idle and not being used for any purpose.
The reason that this address could affect your auto insurance policy is because you have coverage for your vehicle if it is stolen or vandalized. If you live in an area that has more crime than another you could be charged more because your vehicle is more likely to receive damage. When you move you need to notify your auto insurance company so that you are paying the right rates to have your vehicle insured. Concealing this information could result in a denial of coverage.
In addition to the direct address where you are, your coverage will be affected by the state and/or county that you live in. This has as much to do with weather as anything else because your car is more susceptible to damage that is caused by the elements. This is also a major risk to auto insurance companies when there is a major storm that damages many vehicles in one area.
In short, you have a responsibility to your insurance company to inform them when you move so you are properly covered on your vehicle. Your address does have an impact on your premiums because if you are more susceptible to damage you should be paying more for that coverage.