A number of variables affect your auto insurance premium – your driving history or record, your vehicle of choice, your age and your civil status but did you know that your neighborhood also affects the price you pay for your policy too? Your place of residence has an impact on how much you will be paying for your car insurance.
To do a test drive on this, you can take a look at your car insurance quotes with your real residence factored in. After that, do another search by inputting a different address while maintaining the other information you supplied in your first search. You will notice that the car insurance quotes you will get are different from the first one.
The general rule is, those who live in cities pay more than those who live in the countryside. Why is this so? Auto insurance premiums are determined by variables associated with or directly related to filing a claim. Since cities have larger populations, you getting in a vehicular accident is more probably as compared to living in the rural areas where there aren’t many people and aren’t many cars or vehicles. This on its own will make your auto insurance policy a lot more expensive than that of a person with the same car as yours but lives in the suburbs or in the countryside.
Location is an important element in the computation of your premium and factors that come into play include frequency of loss or theft. A heavily populated place also has a higher risk of human error – errors that can cause accidents on the road.
Your neighborhood’s safety services are taken into consideration too according to experts because if the area where you live in has a slow police response time or is far from hospitals or fire departments, it is very likely that you will have to shoulder a hefty insurance policy for your car. Aside from these, road maintenance services or the lack thereof also come into play along with how roads are designed in your city or town.
Places that have top of the line facilities with high response time in terms of law enforcement, rescue, among others usually translate to getting a better price for your auto insurance coverage.
The weather also plays an important role in the computation of your premium. If you live in a place where inclement weather is common, you can be sure that your insurance will be quite high. Places that are hit by storms or hurricanes year after year will not only have their residents suffer from bad weather conditions but also from very high car insurance premiums. The logic behind this is that the more treacherous the roads, the higher the risks of you getting into an accident on the road.
Your location is also one way for insurers to determine whether car theft or vandalism rates are high or not. The crime rate in your area will come into play in this category which means those who live in neighborhoods that are deemed as dangerous will most probably pay a hefty price for their insurance policies.