Residents of California might sometimes be confused about how their residential address can affect their California auto insurance rates. Many different factors come into play when companies determine their rates and risk factors for different areas, which may not seem obvious to the outsider until investigated further. The following brief explanation of some of the key determining factors may help.
Those living in busy urban areas with a high proportion of motor vehicle traffic in the vicinity may naturally find there is a larger proportion of accidents and insurance claims in the area. Rates of automobile theft may often be higher in urban areas since there are more vehicles around. In built up areas there is also more likely to be a greater number of intersections and traffic lights and these are commonly where accidents can occur. Greater numbers of residents can also mean greater numbers of uninsured motorists.
All of these factors and many more contribute to how an insurance company determines the risk of insuring a particular vehicle. Residents in smaller communities may have slightly lower insurance premiums but sometimes that can be offset by higher costs in other areas like parts and repairs for the vehicle. Nevertheless, no matter where you live, you would be best advised to carry adequate California auto insurance coverage.
*
