Car Insurance Rates and Where You Live

There are many factors that determine the rate you pay for your car insurance. One of the larger criteria is where you live.

Let’s take a look at some of the location-specific elements that may have an impact on your car insurance rates.

Weather

Drivers who live in sunny San Diego don’t have a real good chance of filing a hail claim. Nor do they risk sliding around on the ice after a winter snowstorm. Conversely, drivers in Buffalo, NY have a higher chance of having a weather related claim. Insurance companies will charge more for comprehensive and possibly collision coverage in locations where mother nature can deal a blow to your vehicle.

Population – Rural vs. Urban

If you live in a highly populated urban area, there are a lot more drivers than rural regions of the country. More drivers equates to more accidents, which will drive up your rates. Drivers who live in rural areas do not have as many auto-on-auto collision claims, so their rates will tend to be lower.

Highly populated areas also tend to have higher crime rates than rural areas, which can result in higher car insurance rates due to more incidents of auto theft and vandalism. If you live in an area that has a high crime rate, your insurance rates can skyrocket.

Urban drivers tend to have longer average commute times than rural drivers, and the longer your commute, the more you will pay. This is directly related to the higher likelihood of being in an accident due to more drivers on the road. More time on the road plus more drivers equals more accidents.

Drivers who live in wooded or mountainous areas can have more accidents involving animals like deer, elk, bears or moose. These locations may have a surcharge based on past claims history.

The State you Live in

States all have a minimum level of liability coverage that is required by law. Living in a state that requires you to carry higher levels of coverage will cost you a little more each year. But it’s not a good idea to carry just the bare minimum levels of coverage for liability as coverage won’t be adequate for any kind of serious at-fault accident.

Most people won’t base the decision on where to live based on their car insurance rates, but just be aware that where you choose to live can have a direct impact on your car insurance policy.