You may live in a certain area because of financial or work reasons, or because you want to live close to relatives. It doesn’t seem fair, but where you live can have an impact on how much you pay in car insurance premiums.

When an auto insurance company issues a car insurance quote, it is based on a variety of factors. The one thing that these different factors have in common is that they all predict the likelihood that you will get into an accident in the future. Obviously, the fewer factors that apply to you, the lower the number you can expect on your quote. However, many people don’t know that location plays a role in their auto insurance quotes. Where you live, and where you do the majority of your day to day driving are definite factors in your insurance rates.

When it comes to auto insurance rates, not all states are the same. New York, New Jersey and Washington DC have some of the highest rates, for example, while Maine, Iowa and Idaho have some of the lowest. This may not seem fair, but rates are based solely on statistics. Places where there are more accidents and pedestrian injuries will have to pay more because the likelihood of a collision is greater.

Whether you live in a city or a suburb can make a big difference. If you live in a city, you can expect higher rates, due to the large amounts of pedestrians and cars. Amount of traffic, violent crime and accidents play a factor. On the flipside, if you live in a rural farmland or suburban environment, with little traffic and few pedestrians, your insurance rates will be lower, because your chances of getting into an accident are greatly reduced. The rate of car theft per location is also a factor. If you live in an area where car theft is rampant, you can expect to pay a higher premium, as opposed to a comparatively crime-fee area. 

Whether or not you park your car on the street or in a garage is another location factor. If you park your car in the street, you are leaving it vulnerable to theft and break-ins, and car insurance companies will view this as a risk when it comes to coverage. On the other hand, if you store your car in a garage, you will likely receive a lower car insurance quote.

Clearly, location plays a part in the amount of money you will be spending on car insurance. Living in an area that is deemed risky will result in higher premiums than living in a low risk area. If possible, you can always relocate to a less risky area if you want to lower your auto insurance quotes.