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When you are getting insurance quotes, one of the first pieces of information that you are required to give is your ZIP code. Auto insurance specialists determine rates by the risks associated with your ZIP code. This risk assessment is called your ZIP code's “loss history.” The loss history includes the history of claims in your area, crime rate and the number of drivers. Areas that have higher traffic will have increased risks of accidents and, therefore, higher costs to the insurance company. Areas that have a history of theft or vandalism will also have higher auto insurance rates. Unfortunately, unless you move to another location, you have no control over the higher insurance rates in your ZIP code.