Reader question:
Does where you live have an effect on your car insurance rates?
Andy
It does!
To console you, though, it has the same effect on you as it does on all your neighbors, so even if you’re paying higher rates because of your location, so is that weird guy next door. Misery loves company. Still, the effect that geographic location has on car insurance rates isn’t something that most people can just change, but it’s good to know about it.
- State law. Some states require more extensive coverage than others, so if you live in a state like this you’ll naturally end up paying more. There are three states that don’t require car insurance at all, and as such tend to have lower rates, but everywhere else, you’re stuck.
- City vs. rural. If you live in the city, you’ll pay more than someone who lives in the country. This is because, where population is larger and more closely packed, the possibility of accidents and theft goes way up.
- Weather. If you live somewhere where natural disasters, like floods or earthquakes, are common, you might pay higher car insurance rates.
So, if you live in a more highly priced area, how do you get lower rates? Well, you could move…But nobody wants to do that. The best thing to do is shop around and, most importantly, take advantage of all of the discounts you’re qualified for.
Cheers,
Fashun Guadarrama.