Where You Live And What You Pay
Posted on 12. Aug, 2010 by admin in Policy influences
Personal characteristics such as if a person lives in a rural or urban area will also determine the price of a policy. Those living in urban areas will pay higher premiums because, once again, statistics show that there are more accidents taking place in urban areas as opposed to rural areas. Granted this could be because there are more people per square mile in urban areas than there are in rural areas, but insurance companies base their policies off of statistics and not geographic factors.
Also, if you are living in a “high crime” city you will pay more for your car insurance premium because of the heightened risk of automobile theft. People who live by the ocean will also pay more in car insurance premiums because of the risk of natural disasters. You may also seek a hike in your car insurance if you live in an apartment complex or in a condominium because of the element of communal living. However, if you live in a subdivision which is gated, the cost of your premium will go down.