Especially when people move from smaller places to large cities they notice the huge gap in vehicle insurance premiums. This gap depends on from where you moved and to which city location. You may have to pay twice for city auto insurance in some parts of metropolitans compared to another zip code within the same city lines. When considerably high premiums are involved, it is worthwhile going over the reasons in an attempt to cut rates.
One of the main reasons is the high auto crimes in the cities. Insurers pay millions of dollars for theft and vandalism related damages every year. They will surely want compensation when the chance of your car being stolen is increased. Luckily, the opposite is true as well. When you take measures to stop thieves, you will be rewarded handsomely.
So, the first solution is to buy cars with higher security features. Depending on how far you like to go, trading automobiles in wish lists of criminals with less targeted ones will be helpful. Furthermore, choosing safer cars as well as the secure ones will increase the discounts. These measures can bring the costs down considerably that will justify paying a little bit more while purchasing an auto, if you need to.
As soon as you move into a city, first thing you will notice is the congestion and how many cars, streets and lights are there. Probably, you will mostly suffer minor damages within a city due to speed limits, but a large number of claims and settlements are small. Since the numbers of them are high, they will make a substantial total every year.
This will affect the rates and there is not much you can do about it. Actually, there may be something you can do depending on your attitude to claiming. The payment amounts for the claims will be same regardless of where you live. However, their effects on premium increase will be a lot more dollars. In other words, a ten percent increase in the rates will mean a lot more dollars with city premiums. So, paying some of the damages out of the pocket to reduce the claim count can be a good solution.
Overnight parking is the next area to consider. The space is limited within the city centers that most cars do not get private parking. Vehicles are safer if they are kept in garages or driveways when they are not used. So, looking for a property with parking when you are renting or buying will help reduce the premium charges. This may be sufficient enough to compensate for additional rents you may need to pay. Besides, many cities charges for administering resident parking permits.
This will take us to the next solution which is to give up additional cars. Widely available public transport is one advantage of the urban areas. For example, couples may decide to retain one car but they may consider the second one to be luxury. When you take insurance, parking charges and other costs into consideration, giving it up can be easier.
Picking your zip code carefully will help a lot as well in several aspects. Choosing a safer neighborhood will automatically cut the costs. Being near to work will reduce the commute and mileages which will bring down premiums. Parking is already mentioned above.
Finally, minding traffic violation penalties can be a good solution. Many city councils are keen to bring extra income with thousands of traffic cameras all across the municipality. This can result in picking too many traffic fines if you do not watch out for them.
When the premium amounts are large, the discounts will be effective as well. Shopping around for better quotes will be extra important then. Most people will be able to find an insurer with lower quotes if they look closely enough. The rate difference between companies can be as much as 50%. Even you get 20% lower rates that would be hundreds of dollars in city premiums.