How Your Garaging Address Affects Your Auto Insurance Rate

With new technology enabling insurers to verify the garaging location of your vehicle, it is very important for auto policy holders to understand the meaning of the term “garaging address” and how it affects them.

What is Your Garaging Address?

Insurers define your garaging address as the primary location where your car will be kept. For most persons, this is where they reside, but oftentimes different situations arise. You’re a snowbird you say, and you split your time between two states? Well, your garaging address would be where most of your time is spent. For example, if you spend your four winter months in Florida and the rest of the year in Washington State, then your address in Washington State is your garaging address.

How does it affect your auto insurance?

Insurers calculate your insurance rate by formulating different pieces of information. Your garaging address is one key piece that can determine whether or not your rate is high or low. If your garaging address is in a crime ridden area where vandalism and car theft is prevalent, then your rates may increase. Conversely, if your garaging address is in an area where crime is at an extreme low, your rates may decrease. Because it can have an effect on the calculation of your insurance rates, it is recommended that you keep your garaging address updated with your insurance provider.