Why does your zip code impact your auto insurance rate? Getting a clear understanding of its effect will help you make better decisions when buying a new home: You'll appreciate that saving a few hundred on a home might actually cost you thousands in auto insurance premium over the course of a few years.

Here are a few of the reasons.

Where you live will largely determine your mileage in a number of ways. If you live far from the places you frequent you will accumulate a higher mileage. Take your job for example: If your home is 10 miles from your job and you drive there five days a week, you'll accumulate twice as much mileage as your neighbor whose office is just 5 miles away.

Will there be access to standard public transit where you are moving to? If you can use public transit it will definitely help you lower your auto insurance premium.

Does your place of residence have a high crime rate? This will determine your auto insurance rates to a high extent. Your area's crime rate affects your risk of vandalism and theft.

If you are deciding to move to new home in a different area, take some time out to do these calculate. The little bit of money you save on your new home might be totally negated by the rate increase you incurred on auto insurance premium.

Also, take some time to do thorough comparison shopping to locate insurers who offer better rates for the area you are moving to. Different insurance company's rates may vary drastically.

Remember when you're shopping for a new place to live; get multiple auto insurance quotes to compare auto insurance for the different areas you are interested in. If your new area adds $200 to your annual auto insurance costs, you'll pay an extra $4,000 over the course of 20 years!