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A: YES. In many cases the area where you live can have a drastic impact on your auto insurance. Generally speaking you home location has an impact in two different ways:
- Your state's laws Each state has enacted rules and regulations that govern the auto insurance industry in that state. In some states, they have gone as far as to specify rates that the insurance companies must offer to certain motorists based on certain predefined metrics (such as the number of speeding tickets you have).
- Your zip code (or where the car is principally garaged). Some zip codes are more risky to insure cars in than other zip codes. For example, a city driver is more likely to have their car stolen or to be in an accident than someone that lives in farmland. Unfortunately, there is no easy way to preview all of the options in your state. The best thing that you can do is ask your insurance company to quote you rates for several different locations (usually zip codes). This will hopefully help you perform a better evaluation of the cost of living of an area before you move to it.
How does this help me lower my auto insurance?
If you are a commuter, you may be able to reduce your auto insurance by keeping your car at work most of the time (if your office is in a cheaper zip code for auto insurance).
Continue to read on to learn more about choosing the right level of auto insurance.
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