The Complicated World of Insurance Made SimpleThe Complicated World of Insurance Made Simple


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The Complicated World of Insurance Made Simple

When I bought my first home, I had a real estate agent lead me through the entire home-buying process. This made it simple and easy for me. However, when it came time to choose a homeowners insurance policy, I became very confused about what made up a good policy. I started by doing a lot of online research into what homeowners insurance features were needed in my area and then finally called an agent who led me step-by-step through choosing the policy that was best for me and my home. I learned a lot during my research and time spent talking to my agent. I have also learned a lot about other types of insurance over the years, so I thought I would start a helpful blog all about insurance. I enjoy helping others, so come back often for new tips!

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What Is A Garaging Address And How Does It Affect Your Auto Insurance?

If you currently have an auto insurance policy or you're shopping around for one, you've probably seen the term garaging address a time or two. However, you might not exactly know what the term means. If you want to save money; however, the garaging address is a term you should familiarize yourself. Learn what a garaging address is and how it can help you.

Garaging Address

The phrase garaging address sounds a lot more challenging than it actually is. In simple terms, the garaging address merely is the location where you store your vehicle when not in use. So, if you park your car in your home's garage at night — your garaging address would also be your home address. 

On the other hand, the term can get a bit complicated if you have more than one property. For example, if you have a home in Pennsylvania, and a winter home in Texas, you'd need to calculate which property you spend most of the time at. Whichever property you're at the most would earn the title of garaging address.

Importance

An insurance company needs to know a vehicle's garaging address for several reasons. First, the company needs to ensure the policy is up to the state standards. Each state has guidelines in terms of the policy minimums and coverage options that are required. 

The policy will need to be in line with the guidelines for the state in which the car spends most of its time. Second, the garaging address of a vehicle offers cues as it pertains to risk. Insurance companies consider the risk of the area when determining premiums. So, if there is a record of high crime in the area of the garaging address, that individual could expect a higher premium.

Make Changes

Whenever you make a change to your car's garaging address, you must notify your insurance company. The insurance company can only extend proper coverage when they know exactly what your needs are. 

Given the previous example of having two homes, if at any point you started spending more time at one of the properties, you would need to adjust your policy as a result. In some instances, the new address might even result in cheaper coverage. 

Speak with your current insurance agent about your vehicle's garaging address, and if you're shopping around for an insurance quote, make sure you let the agent know if you house your car in a garage or not.