The Hood Where You Stay And Car Insurance Costs

Most people understand the three major components of auto insurance: liability, collision and comprehensive coverage. Your liability coverage pays for bodily injury and property damage to others in an accident that you cause. Your collision coverage helps repair your vehicle after a crash, and comprehensive coverage does the same for damage not caused by hitting a vehicle or stationary object. Since it deals with “environmental” damage, collision coverage is the part of your insurance that is most heavily impacted by the place you live. Find out more and get a car insurance quote online free from our website.

Different areas have varying rates of vehicle accidents. There are a lot of factors involved. In some cases, the roads themselves can create accidents. Cities with narrow, overcrowded roads with lots of blind corners and poorly placed signals are more intrinsically dangerous than places with wide streets on a straight grid. The average quantity of rain and snow a place gets in a year can affect accident rates. Furthermore, drivers in certain cities tend to be more aggressive than those in other places.

And those are just a few of the variables. Different liquor laws (including bar licensing) contribute to different patterns of drunk driving from city to city, county to county, and state to state. The number of teen drivers in an area can also have an impact on accident rates and auto insurance rates. A high number of teens in the area increases the insurance costs.

Insurance companies track the number of accidents in a particular area, down to the neighborhood/ZIP code level, and factor that into the rates they quote for your insurance. Besides accident frequencies and fatalities rates, insurance companies pay close attention to reported crime statistics, especially those that point to higher-than-average insurance claims. Some of these include:

  • Auto thefts (stolen vehicles)
  • Auto burglaries (stuff stolen from vehicles)
  • Auto vandalism
  • Insurance fraud

If vehicle-related crimes are higher than average in your neighborhood, you’ll likely pay more than residents in other parts of town.

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