Why do car insurance, the first thing they ask is for you zip code?

Question

The first thing they ask is your zip code. Why not your driving record?

Answer 1

The zip code where you live indicates the area your car is parked in at night and they use incident statistics in your area to calculate the rates.

Answer 2

Because where you live is important to them.  Theft rate and accident rates in your are are used to calculate prices.

Answer 3

Insurance is basically a kind of gambling.  The insurance company wants to figure out the odds of having to pay out money.  They need to give themselves a 'house edge' in order to 'win' in the long run.  So they use lots of math and statistics to figure out how to do this.

You'll want to research this some more....

http://www.safelinked.info/go.php?link=i...

Have a nice day.

Answer 4

Because driving in certain areas is more dangerous than driving in other areas. For instance there are way more accidents in the big cities than in the country side.

Answer 5

Because insurance rates are largely determined by where you live

Answer 6

Because rates vary according to the area you live in.