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Miami Lakes

Miami Lakes seeks own ZIP code to help lower car insurance rates

 

mherrera@MiamiHerald.com

The town of Miami Lakes will look into ways to set up its own ZIP code in the coming months, which could help lower car insurance costs.

The town was denied their request for a separate ZIP code by the United States Postal Service on Dec. 16. The USPS said the separate ZIP code would be too expensive and require too much additional staffing for the organization.

Vice Mayor Manny Cid is leading the search for alternative options, including contracting with a delivery service. Cid proposed splitting the revenue between the town and the USPS. The funds would be used to pay for the delivery service. No tax money would be used for the program, Cid said.

ZIP codes can affect car insurance rates, according to a report by CBS MoneyWatch last May. Average annual insurance costs vary by as much as $250 within the four Miami Lakes ZIP codes, from $2,102 to $2,352, according to averages on carinsurance.com. Cid hopes that with its own ZIP code, these averages would be lowered.

Insurance companies factor by ZIP code the total number of car thefts, break-ins and fake injury claims into their calculations. The new ZIP code would distinguish Miami Lakes from adjacent neighborhoods, which insurance companies have determined to be higher-crime areas.

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