If you have ever tried getting auto insurance quotes for your car as if you were living in another city or state, you were probably surprised to learn that the quotes differ greatly depending on where you live. Sure, it may sound logical when comparing large cities to small towns, as the intensity of traffic and the risk of accidents is very different in such cases, but it’s not always the case. Quite often two little towns can have a difference of hundreds of dollars in average annual auto insurance quotes just because there’s a state border dividing them. Or it can even happen within the same state. Naturally, such a state of affairs raises a lot of questions concerning the practices employed by auto insurance companies with regards to their service pricing. But let’s look at the whole picture to see if the insurers are the ones to blame.
As mentioned in the previous passage, one of the main factors affecting auto insurance quotes with regards to your place of residence is the intensity of traffic, which is proportional to the number of cars in the area. Naturally, the larger is the city, the heavier is the traffic, the more frequent the accidents, the higher the claim payouts and the more expensive the insurance. It’s a rather obvious and direct chain of cause and effect that everyone seems to understand. Unfortunately, traffic intensity is not the only factor in play when it comes to determining the average insurance costs for a particular area.
The local car theft rate, which is directly affected by the local crime rate, is a very important factor influencing average auto insurance quotes. It’s evident that if cars get stolen more often in a particular area, insurers will face higher costs with local customers and in order to cover these costs they will charge higher premiums respectively. That’s why there can be very pronounced fluctuations in insurance quotes depending on the part of the city you live, especially if it’s a big city. For example, the average auto insurance quotes in Bronx can sometimes be twice as high as in Staten Island because of the difference in local car theft rates. That’s why it is important to assess the local crime situation of your neighborhood and take your auto insurance quotes adequately. Or move to a safer area for lower rates.
When it comes to moving, if you are really eager to get lower auto insurance quotes you may actually want to think about moving to a different state altogether. Local insurance legislation, or minimum requirements to be more precise are another factor that has a strong influence on average insurance costs. Each state has different requirements concerning the mandatory types of insurance and the minimum amount of coverage for the policy to carry. Obviously, this leads to a pronounced difference in average insurance quotes and situations when crossing the state border can halve your premiums instantaneously. Sure, it seems like a very global solution to the problem of expensive auto insurance, but if you’re thinking about moving to another place right now then make sure to pick a state with lower insurance requirements.
And let’s not forget about the local economic situation, which is yet another factor that has to be taken into consideration Areas with high unemployment rates tend to have higher percentage of uninsured drivers, which automatically raises auto insurance quotes for everyone. For example, in the state of Mississippi about 25% of all drivers don’t have a valid policy, and as a result this state is considered as one of the most expensive to get auto insurance in. That’s why you have to pay attention to the local economic situation if you need to know if your auto insurance quotes are adequate.