Many external factors are taken into account when determining car insurance rates and often where you live can be more influential than your driving records. Generally, premiums are fifty percent to twice higher in cities in comparison to suburbs and can be even higher than smaller towns in the countryside because cities have higher crimes, auto theft, vandalism, congested roads, denser population, lack private parking and higher wages and rents in cities affect the costs of vehicle repairs.
Usually cities within the large metropolitan areas are the worst in terms of higher automobile insurance rates as the population is denser and often roads are choked with gridlocks, especially in rush hour traffic. New York, Los Angeles, Detroit and Baltimore are some of the examples where drivers pay nearly twice more for vehicle insurance in comparison to the average in the respective states.
Here are some of the key reasons why drivers in larger cities pay higher premiums;
Population density increases the number of cars, buses, garbage trucks, delivery vans, pedestrians, cyclists and motorcyclists on the roads. This naturally increases the chances of accidents. Although they are often not fatal due to lower speed limits in the cities, the sheer number of them cause concerns for the insurers enough to charge higher premiums for the resident drivers.
Congested roads cause similar problems and therefore you may have to pay even higher rates if you have a long commute every day. Companies usually check the distance to work to calculate your commute.
Higher crimes are almost a given in cosmopolitan areas and some of the big cities have noticeably higher auto theft ratios. Vandalism is another problem. These losses force automobile insurers to charge more to make sure at least they break even after paying claims.
Higher costs are another concern. Wages and rents are usually much higher in cities that increase the vehicle repair costs after accidents.
Lack of private parking leaves cars more exposed. In the suburbs, people have driveways. Even if they park on the road, they only have resident traffic to worry about.
However, drivers in smaller cities in states with low population density often either don’t have higher car insurance rates or actually pay less than the average premiums in those states. For example, Montana is one of the least populated states with just over 1 million residents mostly living in the wide countryside. It has a handful of small cities and only one has a population over $100,000. So, Montanans living in the largest cities of Billings, Great Falls and Missoula pay lower premiums for auto insurance in comparison to the state average.
This is mainly because these cities are big enough to provide every facility you would expect but not big enough to cause all the problems you would have in much larger cities like congestion and crime. For example, living closer to fully equipped hospitals would allow motorists to get quick medical help that reduces the chance of prolonged injuries and reduces recovery times. This in turn lowers the injury claims insurers have to pay.
General pattern is that drivers living in larger cities pay up to twice higher car insurance than the average premiums in their states, although there are exceptions to it and not as bad in some states. Nevertheless, cities have plenty of insurance agents and brokers to help you find the best prices to save some money.
And shopping around for the best rates can deliver much higher savings when you are paying city auto insurance premiums. Even if you get the same percentage discount as someone living in a sleepy hamlet, you save twice more in terms of dollars because you pay twice higher premiums. So, always get multiple quotes.
The alternative may be living in the suburbs and commuting. This can be more favorable for families when there are better schools, and more recreational facilities. Car insurance rates would be much cheaper in a safe suburb neighborhood but you need to consider the time and cost of commuting.
Also, think about how much you would use the car in your new address. If you are going to be mainly relying on public transport, the automobile may only be used for leisure that would qualify you for some savings. Also, you may want to get rid of the second vehicle, if you have one. In countryside locations, private autos may be the only way of getting around but you have more options in urban areas.