Where you live matters when it comes to auto insurance costs.  It’s not the only thing that matters when it comes to securing coverage, but those living in metro areas (like Chicago, Dallas or Portland) tend to pay more because risks are higher.  Why?  In a nutshell…more people=more traffic, more chances of inattentive drivers/busy streets/pedestrians, etc.  It’s just more and more of everything.


Risk Defines Costs for Insurance


Imagine you’re driving down a street in a major metropolitan area.  There are cars everywhere, parked and moving; there are buses, taxis, bicyclists and pedestrians.  Drivers are busy trying to get to work or school in rush hour traffic.  There are people everywhere, many looking down at their phones.  Now, think about the smaller town.  There is still a rush hour and people looking at their phones there, but what you’d notice is there are fewer cars and congestion.  There may be fewer rushing drivers as traffic tends to move more smoothly.  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.  That is, areas where people often get tickets or drive recklessly are a higher risk.  Another factor is accidents.  If you live in a community where accidents happen frequently, this raises the costs to you.  It is more likely that the insurer will need to pay a claim in these areas.


Other Factors Matter, Too


Metro areas tend to have higher prices for most things.  The cost of living there is higher than non-metro areas.  This means repairs and even new vehicles may cost more.  As a result, it costs more to make those repairs after a car accident occurs.  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.  Be sure to let your agent know you drive sparingly; some companies will give a discount for this.


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 a vehicle and the coverage you’ll need.  You may find the location is not a big component to your costs as other factors, such as your credit score and driving history.  Work on improving those to save more. 


We check the rates at all renewals for each of our customers.  We want to make sure everyone is getting our best rate, every time.  It’s what we can do for our clients, besides inform, to combat increasing rates.  It’s what we’ve done for 25 years!




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Solo Insurance® where great rates and service meet.  We shop the rates for you upfront and at renewals, always making sure you are with our best rate for your insurance needs.

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– Veteran/Family owned since 1994 –

Posted 8:39 PM

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