No correlation between where you park your vehicle and insurance premiums


Parking your car in a garage is certainly a safer option than parking it on the road, because the vehicle would be better protected against acts of vandalism, theft, and other elements. Despite this well-known fact, there is no real correlation between where you park your vehicle and the auto insurance rates. Insurance companies may ask that question only if you own a classic vehicle, but not otherwise. Insurance firms like Amica still ask their clients this question. However, Shannon Rodgers, who is the assistant VP of sales & client services, states that just popping that question is like going down memory lane.

Although the company asks these questions, this is really irrelevant because it does not really matter while settling rates. Over a period of time, insurance firms have realized that the prospects of an individual filing a claim are not too different in case the vehicle is parked in the garage or in the driveway. Just having your car inside a garage is not going to matter if you wish to avail cheaper car insurance.

Insurance companies have also realized that not many motorists actually park their vehicles in their garage, despite the advantages with regard to the safety aspect of the car. Penny Gusner (consumer analyst) for a website recently ran a check on auto insurance rates in California, Florida, and Ohio. It was found that none of the insurance providers asked their customers where they parked their vehicles at night. In fact, an insurance agent even mentioned that though people have covered parking space, they rarely used them because the space is usually filled with unwanted objects or other belongings.

Chris Hackett, Director (Personal lines) Property Casualty Insurers Association of America states that insurance providers instead, focus on various factors that are backed by relevant data. For instance, they look at the make and the model of the vehicle, driving record, other drivers in the family, number of collisions of that particular make and model, individual credit scores, etc.

Although where the car is parked at night does really matter a lot, the ZIP code is the one that actually determines the car insurance rates, and not whether or not you park in your garage. So, if you belong to a particular ZIP code, your premiums would be calculated according to the geographic location, states Hackett. Insurance rates are also much lower in rural areas because of the lesser traffic and lesser number of accidents there.