Why Your ZIP Code Can Double Your Car-Insurance Rate

Data study · filed with regulators

Why Your ZIP Code Can Double Your Car-Insurance Rate

Updated

Two identical drivers, same car, same record — one across town from the other — can pay wildly different rates. The filings show exactly how much. In Nationwide's Pennsylvania filing, the priciest territory pays 7.6× the cheapest for bodily-injury coverage; at Mercury in Texas it's 4.4×. Every figure below is the carrier's own filed territory factor, transcribed from its SERFF filing.

7.6× priciest vs cheapest area — Nationwide (PA)
4.4× priciest vs cheapest area — Mercury (TX)
2.6× priciest vs cheapest area — GEICO (VA)
2.3× priciest vs cheapest area — USAA (AZ)

Priciest vs. cheapest territory — the filed multiple

USAA (AZ) 2.3×
GEICO (VA) 2.6×
Mercury (TX) 4.4×
Nationwide (PA) 7.6×

Each bar is that carrier's own priciest-territory bodily-injury factor divided by its cheapest — how many times more the most expensive area pays.

Cheapest and priciest areas, by carrier (SERFF-cited)

Carrier / StateCheapest areaPriciest areaSpreadSERFF
Nationwide — PA 690 (0.394×) 610 (2.995×) 7.6× NWPP-134410938
Mercury — TX 79005 (0.40×) 78852 (1.74×) 4.4× MERY-134769395
GEICO — VA 312 (0.614×) 213 (1.594×) 2.6× GECC-134876961
USAA — AZ 220 (0.6164×) 292 (1.4151×) 2.3× USAA-134755352

Territory codes are the carrier's own rating territories (or ZIP, for Mercury). All figures are bodily-injury factors within a single carrier-state filing.

What this means for your rate

  • Geography can be the single biggest lever. A 7.6× territory swing dwarfs the effect of a ticket, an accident, or even credit at most carriers.
  • Moving a few miles can change your bill. Territory is set by where the car is garaged — a different ZIP, even in the same metro, can land you in a very different factor.
  • Carriers draw the map differently. Your ZIP might be "cheap" at one insurer and "expensive" at another — which is why comparing carriers on your exact address matters.
  • It's not the whole rate. These are the territory factors alone; your premium also reflects your driver profile, vehicle, and coverage.
See which carrier maps your ZIP most favorably — compare them on your actual address.

Cite this data

Free to cite and reference with attribution. Every figure is a public SERFF filing you can independently verify.

Suggested citation:

FastAutoQuote, “How Much Your ZIP Code Moves Your Car-Insurance Rate,” an analysis of filed SERFF territory factors. https://fastautoquote.org/why-your-zip-changes-car-insurance

Machine-readable data: /api/v1/territory-spread.json · Media & data inquiries: press@fastautoquote.org

Related studies: Credit · Tickets & accidents · Driver age · Rate changes.

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