Where you live matters when it comes to auto insurance costs. This is not the only thing that matters when it comes to securing coverage, but those living in metro areas tend to pay more because risks are higher. If you move, you need to let your car insurance agent know. Moving out to a rural or less urban area may help you save some money. But why is this? Here's what drivers in Western Massachusetts need to know.
Risk Defines Costs for Insurance
Imagine a street down a major portion of a metro area. There are cars everywhere, and drivers are busy trying to get to work or school in rush hour traffic.
Now, think about the smaller town. A lower population means fewer cars are the road, which in turn means fewer aggressive or rushing drivers. This is a key difference that plays a role in how much you pay for auto insurance. Where there is less risk, there is less cost.
Auto insurance companies assign risk based on past occurrences in an area. Areas where people often get tickets, cause accidents, or drive recklessly are a higher risk. If you live in a community where these instances happen frequently, this raises the costs to you. It is more likely that the insurer will need to pay a claim in these areas, so they charge more for insurance.
Other Factors Matter, Too
Metro areas tend to have a higher cost of living. Along with housing and food, repairs and even new vehicles in these areas may also cost more than in rural areas. As a result, insurance companies will usually consider this when determining how much to charge for car insurance.
On the other hand, if you live in an urban area and do not drive often, this may help you save some money. In these areas, where many people walk, bike, or carpool, it may not be as expensive to insure a vehicle. If you do drive sparingly, be sure to let your agent know. This could help lower your costs.
How much you pay for auto insurance depends on where you live, your vehicle, and your driving habits. To save money, be sure to factor all these things into the purchase of coverage. You may find the location is not a big component to your costs as other factors, such as your driving history. Be sure to always drive responsibly and safely, and this could help you save even more.