If you are a driver in the United States, you’ve probably considered purchasing auto insurance. But did you know that where you live can have an impact on your car insurance rates? Whether you’re in a city, town, or rural landscape may have a factor on what you pay each month for coverage.
Here, we’ll break down what determines your car insurance rates, how location can affect your premium, and how Infinity Insurance Agency, Inc. (IIA) may help you manage your auto insurance costs.
What factors go into calculating car insurance rates?
Insurance companies may consider a variety of things when determining your rate. Here are some common factors that insurers may consider:
- Your driving history: Tickets and accidents can raise your rates.
- Age and gender: Younger drivers, especially teens, may pay more for insurance.
- Your vehicle: The make, model, and year of your car may affect your rate.
- Location: The city, town, or state you live in may be crucial to your premium amount.
- Coverage options: If you have more coverage or higher limits, you may pay more for insurance.
While many factors are considered for determining rates, location may be a significant factor in your insurance costs due to your town or city’s traffic conditions, high or low accident rates, and crime frequency.
How location impacts car insurance rates
Where you live can make a big difference. If you’re in a city with a big population, you may experience higher rates. But why? Here are some reasons that insurers may consider when justifying a bigger rate in a metropolitan area:
- More cars on the road may mean more chances for accidents.
- Cities tend to have higher rates of vehicle theft and vandalism.
- More frequent insurance claims may happen in cities with larger populations.
On the flip side, rural areas or smaller-town drivers may get lower rates because:
- Less traffic may mean fewer collisions.
- Towns and rural areas may experience lower crime rates.
Unfortunately, just because you live in a small town doesn’t mean you’ll get lower rates. If you drive farther or more miles per day because you live rurally, you still may experience a costly rate. If you’re commuting longer distances because of your location, you may get a higher rate just like drivers in a metropolitan area.
State-by-state insurance laws
Since every state has its own insurance rules and requirements, which state you live in may have a significant impact on your rates. While states like Texas only requires drivers to have liability insurance on their policies, states like Florida require property damage liability insurance and personal injury protection (PIP). California requires only liability insurance on a resident’s policy, but its limits are higher than other states, which may mean more expensive auto insurance premiums.
States that experience natural disasters or severe weather that leads to flooding may also lead to higher rates. Environmental circumstances are significant factors that insurers may take into consideration in states like Florida and California.
Zip code factors
So, does your zip code affect car insurance rates? Though not all insurers use it, your zip code may be a factor in how much you pay in auto insurance. This may be because crime rates, road conditions, and population density can vary in different neighborhoods. If your zip code is associated with higher accident or crime rates, you may experience a more costly car insurance premium.
What you can control about location-based rates
While you can’t always change where you live, there are some location-related choices you can make that may affect your insurance premium.
- Zip code move: Even moving a few miles in the same city could change your premium.
- Parking: If you park in a garage, insurers may see that as a lower risk than street parking.
- Vehicle use: How much you drive, and why, may also affect your rate. If you commute daily for work, that could increase how much you pay for insurance.
How to lower your premium
Now that you know what factors can raise your auto insurance rates, you may feel hopeless. Luckily, there are several ways that may help you save on auto insurance. Here are some tips that may be useful to you:
- Shop around: With IIA, we can compare rates from multiple carriers, helping you find a premium that matches your budget.
- Increase your deductible: By increasing your coverage deductibles, you may be able to decrease your rate.
- Drive cautiously: Keeping a clean driving record can help you keep a lower premium.
- Ask about discounts: IIA’s carriers have many discounts ranging from paying your premium in full to getting good grades at school. Ask our agents about what discounts you may be eligible for.
How IIA can help
Whether you’re in a bustling city or a quiet rural town, IIA can help you find a policy that aligns with your needs and budget. Here’s what we can offer:
- Flexible payment options: We work with insurance providers who can accept both cash and credit payments.
- Accepts multiple types of licenses: Our carriers can assist drivers with a variety of driving histories and licenses, including Matricula Consular, temporary licenses, and foreign driver’s licenses.
- SR-22 insurance: If you're required by a court to get an SR-22, our agents can help you navigate the filing process.
- Spanish-bilingual support: IIA agents can offer Spanish-bilingual customer support, helping drivers find insurance without a language barrier.
Ready to get a policy? Call IIA today at 1-855-478-3705 for a free personalized quote!