Which RI Zip Code Has the Highest Auto Insurance Rates and Why?

Name: Go Local Prov
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Wednesday, March 12, 2014

Victor Paul Alvarez, GoLocalProv Contributor

If you’re in zip code 02909 you’re paying the highest car insurance rates in Rhode Island. Experts say the high rates aren’t the result of car theft or vandalism, but rather the number of uninsured motorists on the road.

“Providence in general is vastly more expensive than elsewhere because of insurability. One out of four drivers on the road are driving without insurance. And the people with insurance are subsidizing all of those people,” said Edwin De Jesus, owner of Edwin De Jesus Allstate Insurance in Providence.

De Jesus said 02909 is Providence zip code that runs into Cranston. A 12-year veteran of the insurance business, De Jesus said rates go up every year. In his opinion, this will continue until Rhode Island adopts stronger car insurance regulation similar to regulations in Massachusetts.

“We operate in Rhode Island and Massachusetts. The one advantage Massachusetts has is you can’t get car registration without insurance. In Rhode Island, there’s no accountability for who has insurance and who doesn’t have insurance.”

Multiple factors considered in rates

Rhode Island insurance rates, like anywhere else, are based largely on factors such as driving record, age, gender and marital status. Insurance formulas also calculate lapsed or canceled policies, make, model, and year of your vehicle, and how your car is used. Rhode Island requires the name of your insurance company and your policy number to register a car or renew its registration. However, De Jesus said drivers have found loopholes that allow them to drive uninsured without detection.

“Customers will pay the down payment on the insurance and never make a payment again. When that policy expires and they need to register their car they’ll play the same game and take another policy.”
This game doesn’t work in Massachusetts, where insurance and registration are linked more securely.

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“In Massachusetts, if your policy is canceled the insurance company notifies the registry. In 15 days, they cancel your registration. Our rates would be a hell of a lot cheaper if they did that here. There’s absolutely no accountability from our state level. If we mirrored the system in Massachusetts it would help everybody’s pockets.”

Using alternate zip codes to lower rates

Industry experts say some Rhode Islanders get around these astronomical rates by registering and insuring their vehicles in a different zip code where they work or own another property. If one can’t – or won’t – pull off this trick, the remaining option is the Rhode Island Automobile Insurance Plan. Established for high-risk drivers, this state insurance pool can be accessed by any insurance agent. The insurer that draws your name will likely charge crushing rates. After three years with a clean record, that insurer must offer you a standard policy.

Tim Foley, Business Manager at First Acura in Seekonk, said Massachusetts residents can typically drive right off the lot because their registration is proof of insurance.

“The car must be insured before it rolls off the lot. A Massachusetts customer can typically drive right off the lot because their registration wouldn’t be active if they didn’t have insurance,” Foley said.

“For Rhode Islanders, I have to call the insurance company, give them the VIN number and they fax over the insurance binder and the insurance card.”

Unless it’s a Sunday. Dealerships often can’t verify Rhode Island insurance information on Sundays because most insurance offices are closed.

Mathematically unforgiving

Calculating insurance rates is complicated and mathematically unforgiving. It’s about more than zip codes and legislation, said Edward M. Mazze. The well-known University of Rhode Island Professor of Business Administration served on the Governor’s Insurance Council under Almond and Carcieri.

“I’m definitely not an advocate for high insurance rates, but there are many reasons for them. Number one is the number of uninsured motorists. But the second reason is the number of drivers without licenses, which could be very significant,” Mazze said.

“People driving on a suspended license or who don’t have a license at all have a major impact on higher insurance rates. If these individuals get into an accident there could be costs that go well beyond the cost of the damages to the vehicle.”

Mazze, who described himself as an “educated layperson” on the subject of car insurance, said the accident and theft rates in Providence also play a large role in the rate calculations. He also said he’s not aware of anyone on the local level who is championing legislation that would result in lower insurance rates.

“The insurance companies spend a tremendous amount of money and effort to come up with a rate structure. Any legislator working on reducing that rate would make a lot of enemies.”

60 Most Dangerous Intersections in New England - 2014

#60

Seymour, CT

Rt. 8 MM 18.58-18.81

Main St. + Canal St./Franklin St.

Total Crashes: 24.6

Fatal Crashes: 0

Injury Crashes: 9.3

Crashes with Property Damage Only: 15.3

Photo: Flickr/Bettyx1138

Source: NH DOT

#54

Nashua, NH

Main St. + NH 111 (Spring St./Kinsley St.)

Total Crashes: 23.1

Fatal Crashes: 0

Injury Crashes: 9.6

Crashes with Property Damage Only: 13.5

Source: NH DOT

#53

Salem, NH

NH 28 (N/S Broadway) + NH 38/NH 97 (Main St.)

Total Crashes: 22.5

Fatal Crashes: 0

Injury Crashes: 10.2

Crashes with Property Damage Only: 12.3

Source: NH DOT

#52

Bridgeport, CT

Rt. 127 Mile Marker 1.02 (Rte 127 + Stillman St)

Total Crashes: 18

Fatal Crashes: 0

Injury Crashes: 11

Crashes with Property Damage Only: 7

Source: CT DOT

#51

Concord, NH

NH 9 (Loudon Rd.) + D'Amante Dr. (Steeplegate Mall)

Total Crashes: 21.6

Fatal Crashes: 0

Injury Crashes: 10.5

Crashes with Property Damage Only: 11.1

Source: NH DOT

#50

Williston, VT

94 US-2 + VT-2A

Total Crashes: 43.8

Fatal Crashes: 0

Injury Crashes: 8.4

Crashes with Property Damage Only: 38.4

Source: VT DOT

#49

Manchester, NH

Bridge St. + NH 285 (Beech St.)

Total Crashes: 20.7

Fatal Crashes: 0

Injury Crashes: 12.6

Crashes with Property Damage Only: 8.1

Source: NH DOT

#48

Concord, NH

NH 9 (Loudon Rd.) + Fort Eddy Rd./I-93 NB Ex 14 Off-Ramp

Total Crashes: 29.4

Fatal Crashes: 0

Injury Crashes: 11.7

Crashes with Property Damage Only: 17.7

Source: NH DOT

#47

Berlin, VT

23 VT-62 + Berlin State Highway: Fisher Rd.

Total Crashes: 37.2

Fatal Crashes: 0

Injury Crashes: 10.2

Crashes with Property Damage Only: 30

Source: VT DOT

#46

Bridgeport, CT

Rt. 127 Mile Marker .64 (Rte 127 + Barnum Ave)

Total Crashes: 31

Fatal Crashes: 0

Injury Crashes: 12

Crashes with Property Damage Only: 19

Source: CT DOT

#45

Nashua, NH

Main St. + East Hollis St./West Hollis St.

Total Crashes: 24.9

Fatal Crashes: 0

Injury Crashes: 14.1

Crashes with Property Damage Only: 10.8

Source: NH DOT

#44

Burlington, VT

11 US-7 + Main St., US-2

Total Crashes: 49.2

Fatal Crashes: 0

Injury Crashes: 10.2

Crashes with Property Damage Only: 42

Source: VT DOT

#43

Waterbury, CT

Rt. 69 MM 18.39-18.49

Total Crashes: 55

Fatal Crashes: 0

Injury Crashes: 14

Crashes with Property Damage Only: 41

Source: CT DOT

#42

Portland, ME

Fort Ave., Hartley St. + Forest Ave., Holly St.

Total Crashes: 45

Fatal Crashes: 0

Injury Crashes: 21

Crashes with Property Damage Only: 23

Source: ME DOT

#41

Portland, ME

Fore River Pkwy. + Valley St., W. Commercial St.

Total Crashes: 64

Fatal Crashes: 0

Injury Crashes: 18

Crashes with Property Damage Only: 46

Source: ME DOT

#40

Manchester, NH

NH 285 (Beech St.) + Cilley Rd.

Total Crashes: 20.4

Fatal Crashes: 0

Injury Crashes: 23.4

Crashes with Property Damage Only: 8.7

Source: NH DOT

#39

Portland, ME

Allen Ave., Entrance to McDonalds + Z Rd., Forest Ave.

Total Crashes: 58

Fatal Crashes: 0

Injury Crashes: 20

Crashes with Property Damage Only: 38

Source: ME DOT

#38

Westbrook, ME

Cumberland St. + Warren Ave.

Total Crashes: 83

Fatal Crashes: 0

Injury Crashes: 17

Crashes with Property Damage Only: 66

Source: ME DOT

#37

Wallingford, CT

Rt. 5 MM 9.35-9.36

Total Crashes: 51

Fatal Crashes: 0

Injury Crashes: 22

Crashes with Property Damage Only: 29

Source: CT DOT

#36

Berkshire, VT

4 FAS 0302, FAS 0307 + Town Rd. 0004

Total Crashes: 3.6

Fatal Crashes: 0.6

Injury Crashes: 3.6

Crashes with Property Damage Only: 0.6

Source: VT DOT

#35

Williston, VT

67 US-2 + Industrial Ave.

Bangor St. + Cony Circle, Cony St.

Bridge St. + Veterans of Foreign Wars Highway

Old Greene Rd. + Randall Rd., Sabattus St.

Total Crashes: 33

Fatal Crashes: 1

Injury Crashes: 9

Crashes with Property Damage Only: 23

Photo: Flickr/Perthhdproductions

Source: ME DOT

#22

Bangor, ME

Broadway, Hobart St. + Broadway, Burleigh Rd., Griffin Rd.

Total Crashes: 33

Fatal Crashes: 1

Injury Crashes: 13

Crashes with Property Damage Only: 19

Photo: Flickr/Ajimaxx

Source: ME DOT

#21

Rutland City, VT

47 US-7 + US-4

Total Crashes: 40.2

Fatal Crashes: 1.2

Injury Crashes: 6

Crashes with Property Damage Only: 35.4

Photo: Flickr/Doug Kerr

Source: VT DOT

#20

Cambridge, MA

Massachusetts Ave. + Vassar St.

Total Crashes: 41

Fatal Crashes: 1

Injury Crashes: 19

Crashes with Property Damage Only: 21

Photo: Flickr/The_th

Source: MA DOT

#19

Worcester, MA

Main St. + Mill St.

Total Crashes: 53

Fatal Crashes: 1

Injury Crashes: 18

Crashes with Property Damage Only: 34

Photo: Flickr/jburwen

Source: MA DOT

#18

Holyoke, MA

Main St. + Cabot St.

Total Crashes: 57

Fatal Crashes: 1

Injury Crashes: 18

Crashes with Property Damage Only: 38

Photo: Flickr/Nanypinya

Source: MA DOT

#17

Waltham, MA

Main St. + Lyman St.

Total Crashes: 73

Fatal Crashes: 1

Injury Crashes: 18

Crashes with Property Damage Only: 54

Source: MA DOT

#16

Bridgton, ME

Portland Rd., Willis Park Rd. + Portland Rd., Sandy Creek Rd.

Total Crashes: 20

Fatal Crashes: 2

Injury Crashes: 6

Crashes with Property Damage Only: 12

Photo: Flickr/gillicious

Source: ME DOT

#15

Lincoln, RI

Interstate 295 + Exit 9 (RI 146)

Total Crashes: 160

Fatal Crashes: 1

Injury Crashes: 36

Crashes with Property Damage Only: 123

Photo: Flickr/Doug Kerr

Source: RI DOT

#14

Stoughton, MA

Canton St. + School St.

Total Crashes: 39

Fatal Crashes: 2

Injury Crashes: 10

Crashes with Property Damage Only: 27

Photo: Flickr/Peter Gene

Source: MA DOT

#13

Chelsea, MA

Revere Beach Pkwy. + Washington Ave.

Total Crashes: 39

Fatal Crashes: 2

Injury Crashes: 11

Crashes with Property Damage Only: 26

Photo: Flickr/Bettyx1138

Source: MA DOT

#12

Warwick, RI

RI 37 + US 1 (Post Rd.)

Total Crashes: 293

Fatal Crashes: 0

Injury Crashes: 69

Crashes with Property Damage Only: 224

Photo: Flickr/eliduke

Source: RI DOT

#11

North Smithfield, RI

RI 146 + Sayles Hill Rd.

Fatal Crashes: 1

Injury Crashes: 47

Crashes with Property Damage Only: 186

Source: RI DOT

#7

Hopkinton, RI

RI 138 (Spring St.) + Wincheck Pond Rd. to Soap House Ln.

Total Crashes: 4

Fatal Crashes: 3

Injury Crashes: 0

Crashes with Property Damage Only: 1

Source: RI DOT

#6

Middletown, CT

Rt. 17 MM 21.55-22.14

Total Crashes: 372

Fatal Crashes: 0

Injury Crashes: 107

Crashes with Property Damage Only: 265

Source: CT DOT

#5

Charlestown, RI

US Post Rd. SB + Kings Factory Rd. to RI 216 (Ross Hill Rd.)

Total Crashes: 51

Fatal Crashes: 3

Injury Crashes: 8

Crashes with Property Damage Only: 40

Source: RI DOT

#4

Providence, RI

Interstate 95 + Exit 18 (Thurbers Ave.)

Total Crashes: 296

Fatal Crashes: 1

Injury Crashes: 79

Crashes with Property Damage Only: 216

Source: RI DOT

#3

Somerville, MA

Mystic Ave. + Fellsway

Total Crashes: 91

Fatal Crashes: 3

Injury Crashes: 24

Crashes with Property Damage Only: 64

Source: MA DOT

#2

Pawtucket, RI

Interstate 95 + Exit 29 (US 1/Broadway/Cottage St.)

Total Crashes: 191

Fatal Crashes: 2

Injury Crashes: 55

Crashes with Property Damage Only: 134

Source: RI DOT

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New Haven, CT

Merritt Parkway Mile Marker 46.42-47.03

Total Crashes: 561

Fatal Crashes: 0

Injury Crashes: 125

Crashes with Property Damage Only: 436

Source: CT DOT