Does where I live affect my car insurance rates?

Yes, where you live affects your car insurance rates. In fact, where you live and your driving record have the biggest impact on your auto insurance premiums. Car insurance companies look at where you live and use accident and car theft statistics to determine rates. Enter your ZIP code below to find the cheapest auto insurance coverage in your area.

Compare Cheap Car Insurance Quotes

 Secured with SHA-256 Encryption

Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

Full Bio →

Written by

Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

Full Bio →

Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 26, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right cheap car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare cheap car insurance quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

Things to know...

  • Your zip code matters when it comes to calculating your car insurance premiums
  • If you live in a high-crime area, your rates may be higher
  • Car Insurance companies use many factors to determine how much you will pay
  • If you need lower insurance premiums, you can use a comparison tool to shop the rates of other carriers

Many factors can influence your car insurance rates, and your zip code is just one of them. When you give your insurance company your address, you are telling them critical information about your location that can either work in your favor or against you.

Fortunately, your zip code is only one factor, and if you don’t like the rates of your current insurance carrier, you can easily look for lower rates with another company by using a car insurance comparison tool.

Information that Can Be Gleaned From Your Zip Code


Your address, including your zip code, can provide insurance carriers with a plethora of information. By performing a quick online or database search, your insurance carrier can locate the crime rate in your neighborhood.

They can determine if your area is affluent or struggling, and they can see how many cars have been stolen or vandalized in your area.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Checking Rates by Zip Code

If you want to check the car insurance rates across the city where you live, you can use a comparison tool to get quotes for multiple areas. When you input your information, leave everything the same except your address.

While you won’t be able to use the addresses that are not your own to get car insurance, you will be able to see the differences in rates across your city or county.

Answering the Move or Don’t Move Question

If your zip code is causing your insurance rates to be higher than normal, you may be wondering if you should move. While you may want to consider moving to a better neighborhood in the future, there’s no reason to pack up your house.

In addition to your zip code, car insurance companies use several other factors to calculate your auto insurance rates.

  • How Many Claims You’ve Had
  • How Much Coverage You Need
  • If You Are Over the Age of 25
  • The Number of Miles Your Drive Per Year
  • Your Credit Score
  • Your Gender
  • Your Marital Status
  • Your Past Driving Record

Lowering Your Car Insurance Rates


If you have a zip code that is associated with high crime rates and/or poverty, the other factors that are considered when underwriting your auto insurance policy, including your credit score, the type of car you drive and your driving history, may make up for the insurance premium rate hike. If it doesn’t there are several things you can do to ensure you get the best rates on your new car insurance policy.

  • Lower Your Coverage – If you have full coverage, consider lowering it to liability only or reducing your coverage amounts.
  • Raise Your Deductible – If you have full coverage, consider raising the amount of your deductible to lower your monthly premiums.
  • Make Sure You Are Getting Discounts – Car insurance companies offer numerous discounts from multi-line to good student discounts that can help make your car insurance more affordable.
  • Shop Around – Different insurance carriers weigh the factors differently, which could result in lower insurance premiums. To find better rates, just use a car insurance comparison tool to quickly find quotes.

Your zip code can cause your insurance rates to be higher or lower, depending on where you live. If you are planning on moving, you may want to check the zip code with your insurance carrier, but since there are other factors that are taken into consideration, you may be able to negate the cost of your insurance by ensuring other factors, like your credit score, car insurance claims and driving history are good. If all else fails, you can always switch insurance companies by getting quotes from a comparison tool.

Compare Cheap Car Insurance Quotes

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption