Insurance by Zip Codes (Los Angeles, Glendale: renters, car insurance, crime)

[ConsideringLA]

I thought this was supposed to be illegal by now, but I had to share something incredible:

By moving from Sherman Oaks (near the Galleria) to Burbank (Magnolia Park), our insurance dropped $94 per month.

Same cars, same drivers - and a longer commute to Warner Center.

We are insured through Mercury and shopped rates aggressively 2 months prior to the move - Mercury was the cheapest for us.

Yet it dropped nearly $1200 per year by changing zip codes. We also noticed preschool costs are more expensive in SO/Encino, as are gasoline and groceries.

If anyone has insight as to why little-ol-Burbank is cheaper on these basic necessities, I'm all ears.

[cynwldkat]

It is suppose to be illegal to charge insurance rates by zip codes but it is still alive and well!!!! I don't know how they get away with it but they always have and presumably will continue!

[EscapeCalifornia]

Why shouldn't rates vary with risk? The fact is, some areas have much higher odds of causing a claim than others. Apparently, Burbank has a much lower rate of car theft or crashes than Sherman Oaks. If you can, post the breakdown of the premium where they state how much is for liability, how much for collision, uninsured motorist, etc. I'd like to see the comparison between the two locations.

[lesallimc]

Nope, it's still done. My rates went up when I moved last year, although my personal rate of crime has gone down. I've always been a statistical anomaly though...

[steelronkeel]

Yeah, I just researched renters insurance, comparing Encino/Tarzana area to Burbank/Glendale and the latter seems to be $100 cheaper. I'd like to know the reason also.

[katenik]

I believe the regulation states that insurance rates are not supposed to vary by zip code within the same city. By moving to Burbank, you left the City of Los Angeles.

[bhcompy]

i believe this practice is still alive and well. a friend of my family lives in signal hill, which shares a zip code with the surrounding long beach area(which is higher crime eventhough signal hill is walled off from that) and had to pay a much higher amount in auto insurance after relocating from lakewood

[Full-Blooded American]

Which zipcodes are the most expensive to insure?

[NefariousTheos]

My experience with car insurance is when I lived in El Monte(not the greatest anymore) my rate was cheaper, but when I moved to Monrovia(better city) my rates went up. both are L.A.county. when I questioned my insurance Co. as to why the increase, They told me because if an accident occured in my new city it would most likely be with a higher class of car!!
Go figure

[Mathguy]

I have read that it is still ALLOWED but cannot be the main determining factor.
It's an utterly retarded political grandstanding move that just re-arranges the deck chairs but isn't going to make things more fair and will certainly not save money in totality.

The winners if fully implemented would be zip codes with more theft, vandalism, less responsible drivers living in it. The losers would be from the other areas whose rates go up to pay for the winners lower premiums.

As for the Idiots with horrible driving records if that is given even more weight, they will either:
a) Go without insurance (but still drive and cause accidents). This is what happened in NJ, they have the highest rates in the US.
b) will be insured by the state mechanism at a subsidized rate (Care to guess who pays the subsidy?)

If you pay $1000 for auto insurance, the insurance company profit on that is going to be like $20-30 or so as a ballpark # to give you a sense of scope.