How your ZIP code can hike your car insurance premium [CBS News]
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Source: CBS News
How your ZIP code can hike your car insurance premium You might not feel so friendly with your neighbors across the street if you found out they're paying $410 less in annual car insurance premiums -- even though everything about you and your neighbor is exactly the same, including driving record and the make of your cars. The only difference, as the Consumer Federation of America (CFA) found out: your ZIP code, which lots of insurance companies in many states use to decide who will pay how much. In one extreme example in Michigan, drivers living in Detroit paid 62 percent more annually for a basic liability policy than those living in adjacent Grosse Point, said the CFA in a study released Monday. Insurer Allstate more than doubled its rate for one Denver low-income ZIP code compared with a nearby suburban one. ZIP codes are a convenient, but not a good, way to find out who lives in a particular area and whether an auto insurer wants to take a chance on them, said Bob Hunter, directo
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