Your street, your neighborhood and especially the city where you live are all factors considered by insurance company underwriters when determining your auto insurance rates. These residential factors affect the premiums you will pay for both first and third party coverages.
Urban Living and Auto Collisions
People often joke about New Jersey for many reasons, but a serious examination of the state’s automobile collision statistics presents a unique example of why there are variances in insurance rates for such a metropolitan area as compared to a more rural position. New Jersey is mostly urban, and as with many urban areas it is densely populated with numerous vehicles.
More vehicles means more traffic; more traffic means an increased potential for automobile accidents. If you live in a similar urban area, your collision, comprehensive and liability insurance rates will be calculated accordingly.
City Living, Crime and Comprehensive Coverage
Comprehensive coverage provides payment to you in the event of damages to your vehicle arising from criminal acts such as theft or vandalism. The insurance rates for this coverage must therefore take into legend the increase in exposure due to living in a region with higher criminal activities.
A lickety-split look at national crime statistics confirms they vary from region to region; but according to the National Insurance Crime Bureau, NICB, car thefts and other auto-related crimes occur more often in larger cities. To cover the increased exposure, insurance rates for cars based in astronomical cities must take these higher crime rates into account. This usually means a higher rate and a higher premium.
Liability Insurance
With more people, more cars and more accidents, it’s understandable how city living might give rise to increased vehicle damages and personal injuries. In calculating your insurance rates, this increased liability exposure will usually cause a higher premium for third party coverages.
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Filed under Automobile Insurance Information by on Dec 15th, 2010. Comment. 
