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Location can affect auto insurance cost

Posted On Fri, November 20, 2009

Along with how safe a driver a person is, where they live can affect the price of auto insurance.

In a recent column for the Philadelphia Daily News, personal finance writer Harry Gross noted that insurance companies look at a variety of factors when determining risk. Risk is the driving force behind insurance - the more hazardous a policy may be, the higher it will cost the consumer.

For example, Gross said that a person who has just had a major medical problem may find it more difficult, or at least more expensive, to get life insurance. Auto insurance also runs on assessing risks.

"If there are more auto accidents or vandalism, etc. in your area, the companies will adjust your premium to reflect that additional risk," Gross wrote.

There are a number of other factors that can play into how much a person pays for auto insurance. For example, some insurance companies will reduce costs for a policy if the driver does not use their car very much. Furthermore, people with cars that are more safe may find that their rates are cheaper.
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