Does where I park my car affect my car insurance?

Though car insurance quotes can be calculated fairly quickly using basic information, what you end up paying for your policy can be affected by several specific factors

Most people know that car insurance providers need personal information, like your age and gender, and your driving history, but did you know that where you’ll be parking your insured car will also be an important factor?

Why exactly does it impact your costs? Read below to learn how parking affects your car insurance premium.

What is a car insurance premium?

The word “premium” is used to refer to how much you (the person or the business) will regularly pay for coverage. 

The term is universally used for various types of insurance policies, for example, car, home or health insurance.

Why does where you park affect car insurance premiums?

Beyond giving the company your address, you should be prepared to disclose the place where you’ll be parking your insured car.

The reason it’s used to calculate the cost of car insurance is because car insurance companies need to know how at risk your car will likely be of vandalism, theft and accidents. 

For example, if you live in a bigger city, there’s a bigger possibility of crime. This means that your car is more at risk than in a small town where the crime rate is lower. Parking your car on the street also makes the car be more at risk of something bad happening (like getting your car broken into) than if you park your car in a garage every night.

Is car insurance more expensive in large cities?

In any state, car insurance rates can vary greatly from one zip code to another. In general, a dense, urban area will mean a higher insurance premium.

Do I really need to give the car insurance provider information on where I park my car?

You may feel impatient when on the phone with a car insurance provider as they ask you a series of questions. But remember the combination of various factors is what will give you the most accurate car insurance rate.

Car insurance providers must consider the risks involved with insuring your car, and every car insurance provider will have its own methods of calculating your rate. You’ll need to give all the information the car insurance provider requests if you want all possible factors to be included in the calculation. 

Fortunately today there are ways to get car insurance quotes and sign up for policies online without having to be tied up on the phone for hours with several providers.

What are the best places to park your car?

The best place to park your car is in a driveway, under an awning or inside the garage. This will be factored in along with the city and state where you live and your zip code.

What is the worst place to park your car?

The worst place to park your car is on the street. On the street, cars are constantly at risk of being stolen or damaged and car insurance companies will increase the rate because of it.

What if I don’t always park in the same place? Will I still be covered?

Don’t worry if you park your car in different places every now and then. The car insurance provider is mostly interested in where you regularly park your car.

This does not mean that your car is only covered there. If something happens to your car while you’re at your parents’ house for the weekend or at a friend’s house for the night, you will still be covered.

Can I say that I park my car elsewhere to pay a lower car insurance premium?

Car insurance can be expensive and it’s understandable to want to get the lowest possible premium, but it’s never a good idea to lie about any of the information you give your insurance provider. 

When looking into your case, they’ll easily find out when you have been dishonest (especially when it comes to where you actually live) and there may be serious consequences to this. If you knowingly give the wrong information, not only can your claims be denied, you could also face criminal charges.

What can I do to get a lower car insurance premium?

If your home is in a high-crime area or you don’t have access to a garage where you can store your car overnight, here are other things you can to keep your premium low:

  1. Improve your credit
  2. Decrease your commute by living close to your work
  3. Avoid expensive cars or sport cars
  4. Shop around for the best possible rate available
  5. Choose coverage with a higher deductible

Insurance Guide Pro helps you shop around and compare car insurance rates from top providers, 100% online. Learn more today!