auto insurance

The price of auto insurance is based off of a variety of criteria: age, number of accidents, number of tickets, type of vehicle driven, etc. Based on an article in USA Today, insurance companies might be adding address and zip code to that list. A new study found that people who reside within a mile of a church are 10% less likely to be in an accident and drivers that live within a mile of a restaurant are 30% more likely to be the cause of an accident.

Is a person’s address and zip code a fair variable to add into the equation of what determines the price of auto insurance? If it is used, will the difference in insurance premiums change the behavior of people buying homes? Or will it be a minimal amount that will have little effect? How should insurance companies use this study when setting insurance premiums for their customers?