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  #1  
Old 02-02-2004, 08:47 PM
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Angry Location determines car insurance prices!?

I am currently looking for new car insurance and to do so went to a website called "esurance".

I decided to look up estimates using three different location here in California. I used Sherman Oaks (LA Area), Menlo Park (Bay Area), and Clear Lake (a rural area).

I used the same exact criteria for each estimate, the only thing that changed was the zip code. Here are the results for a 6 month term:

Clear Lake (a rural area) $292
Menlo Park (Bay Area) $373
Sherman Oaks (LA Area) $576

I didn't think that the difference would be so much, I thought maybe up to a $50 difference between them all. I recently saw a news report about a law that bans insurance companies from using location as a rate basis but isn't inforced, WTF is that!

Anyway I'm thinking of using a different, cheaper location than where I live as my location, what bad can come of this?

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Last edited by zeronero; 02-02-2004 at 08:55 PM.
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Old 02-02-2004, 08:53 PM
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Re: Location determines car insurance prices!?

Quote:
Originally posted by zeronero
I am currently looking for new car insurance and to do so went to a website called "esurance".

I decided to look up estimates using three different location here in California. I used Sherman Oaks (LA Area), Menlo Park (Bay Area), and Clear Lake (a rural area).

I used the same exact criteria for each estimate, the only thing that changed was the zip code. Here are the results:

Sherman Oaks (LA Area)
Hard to tell what the geographic differences were in the quotes, but did you expect that insurance costs would be the same? All insurance, whether casualty or life, is priced based upon the amount of insurance and risk.
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Old 02-02-2004, 08:56 PM
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I accidently submited the reply early MTI, now it's complete
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Old 02-02-2004, 09:04 PM
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These are called "territories" and it's completely legal. They figure some areas for example you are more likely to get a hit and run, other areas you're more likely to have your radio stolen, other areas you're more likely to hit a deer or maybe run off the road....these are all examples of why rates are different. How do they calculate it? They are the ones paying the claims so they know before anyone else what's going on, even the cops (I mean as far as trends).

I don't think your idea of using a different territory than the one you live in is likely to work. I mean, you normally deal with an agent, and if not that they STILL need to send you a bill......

Gilly
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Old 02-02-2004, 09:16 PM
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Quote:
Originally posted by Gilly

I don't think your idea of using a different territory than the one you live in is likely to work. I mean, you normally deal with an agent, and if not that they STILL need to send you a bill......

Gilly
I would use a relatives or friends house.
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Old 02-02-2004, 09:40 PM
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Quote:
Originally posted by zeronero
I would use a relatives or friends house.
The insurance company would think this is a great idea. Seriously. It would be everything they need to deny responsibility in case you were involved in an accident. They would then pay nothing and you would be stuck with all the liability. They would have no risk in writing your policy. What a great idea...
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Old 02-02-2004, 09:45 PM
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it sure does

I moved from Augusta to Atlanta and my insurance went up $400 a year on 2 cars, hopefully it will go back down now since I moved back to Augusta..
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Old 02-02-2004, 09:55 PM
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Quote:
I would use a relatives or friends house.
Now THAT is illegal!

Yeah, they'd check that out if you have a claim and deny it.

Gilly
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Old 02-02-2004, 10:53 PM
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Some people in Philadelphia had the same idea (they used addresses in New Joysee). I believe their trials for insurance fraud are coming up soon...
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Old 02-02-2004, 11:22 PM
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Over a year ago, when I returned to VA from MD, I called GEICO to tell them. With nothing changing except my moving to VA, my insurance rates dropped $800 a year!! One reason it's so much cheaper in VA is that VA doesn't have certain laws requiring the insurance companies to charge only so much in cases such as hit and run. Last year my 190 was hit in a parking lot. Of course there was no note. I reported it to the insurance comany and had to pay no more than $250. The insurance company picked up the rest of the $1300 tab.

It's because of laws like that, supposedly to save the insurers money, that make the rates jump way up. Do any of the lawmakers really believe the insurance companies would take on this cost without passing it on to the customers?
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  #11  
Old 02-03-2004, 11:28 AM
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Re: Location determines car insurance prices!?

Quote:
Originally posted by zeronero

Anyway I'm thinking of using a different, cheaper location than where I live as my location, what bad can come of this?

For starters, your claim can be denied. Secondly (depending upon how aggressive your carrier is), they could have insurance fraud charges filed against you. Do you mind having a criminal record? Ask Martha Stewart which was cheaper....paying $1 Million in attorney fees for defending her current charges, or losing $50 Grand in the market?

I would recommend against this fraudulant activity. If you want "cheaper" insurance, raise your deductible or shop for another carrier.
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  #12  
Old 02-03-2004, 11:42 AM
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How can you insure anything in Sherman Oaks for only $576? What kind of insurance are you getting? Is it any good? I could understand it like if you were 55, but you're only a little older than me.
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Old 02-03-2004, 02:55 PM
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Quote:
Originally posted by jamesnj
How can you insure anything in Sherman Oaks for only $576? What kind of insurance are you getting? Is it any good? I could understand it like if you were 55, but you're only a little older than me.
That's for a 6 month period for only liability from esurance. Right now I have State Farm and pay $750 every 6 months for the same coverage.



Well, guess I won't do this, seems no one is in favor of it, so it must be a horrible idea:p I'm moving in a couple months so the price will drop anyway, in the mean time I'll swtich companies to save some money.

It could always be worse, I went on a cruise two weeks ago and someone said he pays over $1k a month for his insurance.
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Old 02-03-2004, 05:16 PM
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In addtion, check your carrier's prices for the amount of "deductible" you're carrying. If you're comfortable with a higher deductible (you pay more out of your own pocket for damage you cause to your car) then the rate will be lower. Also, the best deal is to be a "multi-line" customer by having your insurance business in one carrier, homeowners/renters, life, auto.
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  #15  
Old 02-03-2004, 05:17 PM
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YEah zero, you're right not to do it. People from NY try and insure in NJ or as the other man pointed out, people in Philadelphia try and insure in NJ for lower rates. It works out fine until you have a claim.

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