Most people have no idea that the area in which they live in can positively or negatively affect their car insurance rates. Larger cities typically have higher insurance rates than smaller towns and rural areas. Why is this, you ask? Well, according to data gathered by insurance agencies, bigger cities have more people and more people means crowded streets, which ultimately increases the risk for getting into an accident. Smaller towns have less people, which means roads are less crowded and the car accident risk factors are reduced. Also noted is that bigger cities usually have higher crime rates, which is another factor in determing how much people will have to pay for car insurance.
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