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How Crime Rates Can Influence the Cost of Your Car Coverage

shattered car windshield, crime rate and auto insurance

What do crime rates have to do with your auto insurance?

When you apply for auto insurance in North Texas, the insurance company will look at your personal factors to determine your premiums. One of the things they will consider is the crime rate of the area that you live in. But why does the crime rate have any bearing on your auto insurance costs? Here’s what you need to know.

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 auto 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 a positive note, low crime rates translate into lower auto insurance costs. So, if you are currently living in a safe part of town, then insurers will consider you at low risk for auto damages and theft. As a result, you will be able to access additional saving on your car insurance policy.

This is what you need to know about the relationship between crime rates and your auto insurance premiums. Do you need further assistance with your auto insurance in Carrollton, Texas? If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.