Proposed Law Will Lower Car Insurance for Suburban-Baltimore Residents

You know that car insurance companies take lots of factors into account when they calculate your rates. One of the most common things that companies check for is your geographic location. It makes sense, right? People who live in rural areas have fewer accidents, since they tend to meet fewer cars on the road, and big cities have a higher number of car thieves and vandals. Unlike controversial factors like credit score and occupation, rating consumers by geographic location has been an accepted practice for decades. But is it really fair?

The most common way that car insurance companies pinpoint your geographic location is by your zip code. It seems simple enough, however many residents around Baltimore, Maryland have begun to complain. The zip codes 21225 and 21226 cover areas that are mostly suburban, but also spill over into the city of Baltimore. Suburban residents have been paying higher car insurance rates for over twenty-five years based on the accident and crime statistics of the city of Baltimore, even though the numbers don’t represent the safer suburbs. No wonder they’re mad!

Making Things Fair For Everyone

The zip code debate is a tough one. Some car insurance companies insist that it’s the only fair way to separate locations. It’s understandable that they’re touchy on this subject, since they’ve been accused in the past of charging higher rates to communities with higher numbers of minorities under the guise of geography. Many car insurance companies are now very sensitive to the issue, and they insist that diving up geographic areas by zip code is the only fair way to do it.

It’s a sticky issues. Some legislators fear that if the require all car insurance companies to stop using zip codes to determine prices, it will open the door for them to be able to "carve" their own territories again, which could lead to discrimination on the part of less scrupulous insurers. However, something has to be done for people who are paying city rates outside of the city, so legislators are proposing a local law in the Baltimore area to correct disparity.

Getting the Best Rates Regardless of Zip Codes

With so many touchy issues surrounding the car insurance companies’ zip code debate, it’s logical to wonder if things will ever be resolved. Even before the proposed law, some local companies around Baltimore had corrected the problem. They’re now offering suburban rates to suburbanites. Great news, since these suburban customers are now saving up to 81 percent on their car insurance! Wow!

Even if you don’t live in a shifty zip code, you can still save hundreds on your car insurance. What can you do if you’re being charged higher rates than you feel you should be? The answer is comparison shopping. Using carinsurancerates,com, you can see the lowest rates available in your area. A little time at the computer can save you hundreds. If your current company isn’t giving you a good price, you can be sure that there’s another company just waiting to get your business!