Study: Does Your Zip Code Affect How Much You Pay For Car Insurance?
PHILADELPHIA (CBS) – Can your five digit zip code affect how much you are paying for your car insurance? According to a study done by Carinsurance.com, the answer is yes.
The website researched 33,401 zip codes and analyzed what drivers of a 2014 Honda Accord with full coverage pay.
The good news? Philly is not number one on the list for highest car insurance rates. The bad news, it is in the top three.
The website says, "Car insurance companies assess many factors when setting rates, and your location is chief among them. Based on the number and severity of car insurance claims within the area, insurers assign zip codes different risk levels."
It also adds that insurance companies factor in the frequency of thefts, collisions and vandalism in that particular zip code.
The study concluded that those living in the Motor City pay the highest car insurance rates. Detroit drivers pay on average $5,109, which is a 130 percent increase over the state average of $2,226.
Brooklyn, New York ranks second. The rate there on average is $3,877, which is 151 percent increase over state average of $1,542.
Philadelphia comes in third on the list. The rate in the City of Brotherly Love is $2,760, which is 128 percent increase over state average of $1,210.
Wondering where your zip code lands on the rankings? Click here to see the full list.