Many factors affect car insurance rates and where you
live plays a major role. If you’ve ever had car insurance in different states, you may already
know insurance companies have different regulations depending on state laws. Insurance rates
will differ according to the area in which you live. For example, accident rates and car thefts
are higher in cities, since there are more vehicles, traffic, and people. Those living in rural
areas will generally pay less for car insurance since fewer vehicles, traffic, and people equate
to fewer accidents and crimes.
There are state exceptions to these general rules. For example, under California law, insurance
companies must take geographic location into consideration last when calculating insurance
rates. That’s after the driving record, number of years driving and the number of miles driven
Find Out More About Insurance In Your State
ZIP Codes and Car Insurance
When you apply online for car insurance in your state, one of the first questions asked is your
ZIP Code. The insurer quickly determines the number of claims in this locality, along with the
car theft rate. While this information is crucial when it comes to how much you’ll pay for car
insurance in your state, another factor taken into consideration that’s often overlooked: the
weather in this ZIP Code. Areas prone to flooding, hailstorms and other events harming cars
might mean an increase in comprehensive insurance premiums. Insurers will check out car repair
rates in a ZIP Code and surrounding areas. If such rates are above average, that is also
reflected in the premium for collision and comprehensive coverage.
Gender and Car Insurance
When it comes to car insurance in your state, genders are not treated equally, at least when
young. Males tend to experience higher accident rates than female drivers, at least in their
teens and 20s. In addition, men overall drive more frequently than women and are known for more
aggressive and risky behavior when behind the wheel. That includes higher rates of speeding,
drunk driving, and failure to wear a seat belt. With these risk factors, it’s not surprising
that men also suffer more serious injuries than women when they are in an accident. The good
news is that, by the time men and women reach their 30s, the gender gap in car insurance
premiums tends to disappear. In some states, however, it is against the law to apply rates based
In most states, your credit history affects your insurance rates. This seems unfair, but
statistics show that those with low credit scores have higher claims rates. Poor credit history
may mean the applicant must pay a large percentage of the premium immediately, perhaps six to
twelve months’ worth, rather than pay on a monthly plan. That is because those with lower credit
scores are more likely to skip payments.
Three states – California, Hawaii, and
Massachusetts – do not allow insurance companies to use credit scores and history in determining
People commuting long distances to work are on the road more often than other drivers, and that
means they are more vulnerable to an accident. Those who use their vehicles primarily for local
driving and don’t rack up a lot of annual miles will pay lower rates.
Where you drive each day affects your insurance rates as much as how far you drive. If you live
in a rural or suburban area, you may pay less in car insurance, but that changes if your daily
commute takes you from the country to the city and back again. When you drive from a relatively
low-claim vicinity to a high-claim one, your insurance rates will reflect that change.
The type of vehicle you drive directly affects your insurance rates. Smaller vehicles are more
dangerous in general, while occupants of larger vehicles are less likely to suffer severe
injuries or fatalities. An older vehicle costs less to insure than a new vehicle since its value
is less and many people may not want to purchase collision insurance for older cars. Insurance
companies employ a safety rating for each vehicle based on the make and model’s safety rating
standards. Obviously, the owner of a safer vehicle pays less than the owner of a vehicle with a
relatively low safety rating.
Car Insurance In My State
Each state has its own insurance requirements, mandatory minimum coverage, fines and license
suspensions for driving without coverage, and much more.