It may seem unfair or perhaps it doesn’t always make sense but where you live can determine the kinds of car insurance prices you will pay. Often, the larger the city or congested area, the more expensive the insurance will be. Sometimes rates can vary by street depending on where borders and cut-offs are made by the insurance companies.
Sometimes the insurance companies will make these distinctions because of the potential for lost wages in areas where salaries might be higher than in other areas. Someone in Toronto, for example, may be out more money following an accident than someone in Northern Ontario where salaries and jobs are different.
Also, bigger cities have busier roads, fewer parking options and increase the likelihood of accidents, theft or other issues. Of course, if the population is smaller and there are fewer vehicles on the road there is less of a likelihood of accidents, which reduces the probability of filing a claim.
There are, of course, ways to save money no matter where you live. Anything from changing your driving habits, to shopping around prior to renewal time, to paying premiums up front and increasing your deductibles, will save money in any jurisdiction.
In larger cities being as safe as possible and maintaining a good driving record with minimal traffic violations are things that are under your control. Also, bigger cities with larger
populations have more options for alternative transportation. Leaving the car at home more often or limiting your driving when absolutely necessary will help maintain your clean driving record. There is no reason for not using public transportation especially on days when the weather makes it prohibitive to drive anywhere.
So what’s the difference between Urban car insurance and Rural car insurance?
Urban Car Insurance
· High-density areas can lead to higher rates because of increased chances of getting into a collision
· Urban areas with higher rates of crime can also affect your insurance premiums.
· Is your car stored in a garage, apartment parking garage, or outside? These can all affect the rate on your policy based on the likelihood of theft.
· Finally, what are weather conditions like in the city? Poor road conditions will also likely increase your insurance rates.
Rural Car Insurance
· Low-density areas with a low population mean fewer cars on the road which means a lower chance of claims in the area leading to lower rates.
· Rural areas also tend to have less crime and are generally safer than urban ones.
· Same as urban, if your car stored in a garage, apartment parking garage, you’ll get a better rate, but if it’s stored outside it’s still more likely to be stolen.
· Sometimes rural areas have worse road conditions because of how remote they are. The less a road is serviced by plows in the case of a snowstorm, the more likely you are to get into an accident because of road conditions.
There are certainly other factors besides location that affect the price. Your driving record, the vehicle you are driving, the amount you drive, your age and gender will all also play a role in your costs.
Location is just one consideration that you may not have known about that will affect your premiums. Be aware of your area and why insurance companies consider it a higher or lower premium area and find other ways to reduce your premiums.