Where we live matters to us. And that’s equally true when it comes to the cost of auto insurance. In fact, premiums can vary from neighbourhood to neighbourhood, from city to countryside.
For example, people living in the city generally pay more for insurance than people living in rural areas. This is because auto premiums are largely based on factors tied to the frequency and amount of a claim payout. Since cities have more people, they have more collisions. If there are more collisions in a certain area, the cost for insurance will be higher since the chance of a claim is higher.
Overall crime rates in your neighbourhood also play a part in auto insurance costs. If you live in an area that suffers from high crime rates, the risk of your car being vandalized or stolen is greater. This will impact your premium. Installing an anti-theft device may help reduce your premium.
While many factors are considered in the pricing of your auto insurance policy, location is an important one.
A complete list of factors affecting your auto insurance premium can be found here.