Does Where You Live Affect Your Car Insurance Rates?

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   Mark Bartlett CLCS

   Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers

   Where you live can and does effect your auto insurance rates. Insurance companies base rates on experience in any given area. These would include but not limited to characteristics of drivers, types of vehicles and claims based on frequency and severity. Actuaries then determine rates according to any given area or areas. There are many misconceptions by consumers as to which area has a better rate vs. another. For example some may believe a city would have a higher rate vs. a rural area. However the fact may be that while a city has more frequency of accidents a rural area may have much more severe accidents due to road conditions and so on. While this is only an example this should give you an idea of how rating works.

   Answered on June 5, 2013

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