Rating Territory

This is a geographical grouping in which similar hazards tend to equalize and allow establishment of an equitable rate for that specific territory.

Automobile insurance can be rated for specific geographical area or for individual cities. These territories can be categorized even further by loss frequency.

Sometimes you will see property insurance rated for specific postal codes for higher valued homes.

When you move you may see a rate difference due to a change in your rating territory. For example, if you move out of the city to a rural area you will likely see a drop in your auto insurance rates. Unfortunately since the smaller area is not likely to have a similar standard as a city for fire protection you could see the homeowner or apartment premiums go up.

It is important that you keep your insured informed about a change in address. If something did go wrong and you were sent a registered letter it is adequate to insurance standards if it goes to the "last known address". This could leave you unaware of an important change.