There are many factors that come into play when a car insurance company is determining a customer’s monthly premiums. The most important of these is the concept of risk. The higher the perceived risk the customer presents, be it due to previous accident history, type of car driven, or the location of their home, the higher their car insurance quote will be. For an insurance company, “risk” is simply the chance that they will have to pay out a claim. The greater the chance that a car insurance policy will actually be used, the greater the monthly premium will be. One factor which can affect the cost of car insurance coverage is the location of the garage that the insured car is stored in.
For many, this seems strange, as their garage is likely located on the same property as their home, but even in that case insurance premiums can be affected. A garage which borders a well-traveled street known for car theft and that does not have locking windows or doors will inevitably be treated as carrying a greater risk than a garage located at the rear of a property and which is properly secured.
In some cases, the garage which holds an insured car is not located in the place that the owner lives. Some owners choose to build a garage in another state, especially if they live near a state border and the insurance in the neighboring state is substantially cheaper. Most car insurance coverage is done based on the state that the car “resides” in, and some people do take advantage of this fact to obtain lower car insurance rates. If, however, the insurer discovers that the insured has been parking their car in one state and driving it in another, a cancelled car insurance policy is the likely result.
The main reason a garage location affects a car insurance quote is because of its physical location in general, irrespective of where its owner’s house is located. If a garage is built in a remote area, one in which there is severe weather or poor access to emergency services, the risk involved in insuring it will be substantial. In the same way, a garage built in the industrial district of a city will carry with it inherent risks of damage or theft, leading to a higher premium for the same level of car insurance coverage. Ultimately, the type of car, the record of the driver and the location of the garage will all play a role in determining the eventual car insurance quote given out. Being careful about where and how a garage is constructed can help keep that quote low.
