The cost of car insurance can vary dramatically, and there are many factors that go into it. Most people know that their driving record, and the value of the car are taken into consideration, but did you know that your zip code is too? That is why if you change your address whether it’s a permanent move, heading off to college or moving south for the winter you should always let your insurance agent know.
Garaging, in insurance language, refers to the city or zip code where you live and where your vehicle is most often driven. Insurance companies consider things like the crime rate and the amount of traffic in your area to help them calculate your premium. That is why the same car on a policy in Hopedale would cost less than insuring it in Milford or Boston.
With garaging, like everything else on a home or auto policy honesty is key. Some people will use a different address to save money on their policy, but if there is a claim and the company feels the insured was purposefully deceptive the claim could be denied.
Whether you are a snowbird who heads south for the winter or a parent of a college student who takes a car away to school, notifying your customer service representative is always a smart idea. It could save you hassle if something goes wrong in the future.