7 Things That Increase Your Car Insurance Rate

Location

the effect of location on car insurance rate

Drivers in urban areas have higher insurance costs than those in rural areas. Because there are more drivers on the road in urban areas, accidents are more likely to occur. Denser locations may also have greater crime rates, more reported thefts and break-ins, and hence more claims. Because damage is more likely to occur on a street than it is in a garage, you could have to pay a higher charge to park your car there.

Given that speeding is a significant factor in auto accidents, areas with high speed restrictions may also result in higher insurance costs. The localized extreme weather events that can significantly damage cars, such as flooding, hail, extremely heavy snowfall, ice, and wildfires, may also be taken into account by insurers.

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