You have to shop around
Discounts and surcharges are calculated from your base territorial rate. If your base rate is high, the consequences of any accident or violation you have are magnified.
For example, one insurance company charges $844 for basic liability coverage to residents of the 98101 ZIP code in Seattle, but it charges just $341 for residents in 98926 in rural Ellensburg, Wash.
Now add in a DUI surcharge, multiplying that base rate by 1.5 (most companies would penalize even more heavily). In Seattle, that driver with basic liability now pays $1,266. In Ellensburg, the same driver pays $511.
In most states, every part of your policy is affected by the territorial rate. That's why comparing car insurance quotes becomes all the more important, says Penny Gusner, CarInsurance.com's consumer analyst.
"These companies all have differing claims experiences in your ZIP code," Gusner says. "The quotes you get are likely to reflect that. One insurer may put your area into a high-risk bucket, and another may not."
For example, the average rate from six major insurance carriers for ZIP code 48101 in Dearborn, Mich., was $2,522 -- but that included rates as low as $1,776 and as high as $4,374.
Methodology
CarInsurance.com commissioned Quadrant Information Services to provide a report of average auto insurance rates for a 2012 Honda Accord for every ZIP code in the United States. We calculated rates using data for six large carriers (Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm).
Averages are based on insurance for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. This hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
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