In a recent MarketWatch Guides article, substantial disparities in car insurance premiums based on location within each state have come to light. The study reveals that rural areas generally enjoy lower premiums, while those in urban and suburban areas face higher costs.
Among the states surveyed, certain ones experience significantly larger discrepancies in premiums across ZIP codes compared to others. New York leads the list, boasting the largest cost difference at a staggering 240%. Other states making the top ten include Pennsylvania, Michigan, and Wisconsin.
These disparities in car insurance rates stem from a variety of risk factors, such as natural disasters, traffic density, and property crime risk. Generally, risks escalate closer to cities, while rural regions are perceived as less hazardous.
Across the United States, the average disparity stands at approximately 75%, signifying a two-thirds increase in auto insurance premiums for ZIP codes closer to urban centers. This significant difference has drawn parallels to modern-day redlining when compared to nationwide demographic data.
To address the issue of heightened insurance premiums in urban and suburban ZIP codes, MarketWatch Guides recommends seeking the most affordable car insurance rates. One effective strategy is to compare quotes from multiple providers. Additionally, looking for discounts, bundling policies, improving one’s credit score, opting for less coverage or a higher deductible, and exploring telematics insurance (like pay-per-mile or safe driving programs) can lead to substantial savings on auto insurance premiums.
The post States with Varying ZIP Code Costs Revealed in New Study first appeared on BusinessMole.
