local auto insurance: Geographic location and car insurance rates

Geographic location is one of the factors insurers use when pricing your auto policy. Others include, but are not limited to, driving record, claims history, credit history, age, gender, the amount and type of auto insurance purchased and the type of car you drive.

City vs. rural dwellers. City dwellers generally pay more for insurance than those living in rural areas because the likelihood of an accident or theft increases where populations are larger. Weather in your geographic location may also affect your rates. For example, if you live in an area of extreme weather conditions or a remote area where there are few doctors and hospitals, you may pay somewhat higher premiums because it is harder, and more expensive, to get care in outlying areas.

State laws. Those who live in certain states may also pay more for auto insurance because of state laws that require car owners to either buy a minimum amount of bodily injury and property damage liability insurance or to provide financial responsibility before the vehicle can be legally driven on the road. All but three (3) states, Tennessee, New Hampshire and Wisconsin, require motorists to purchase minimum amounts of auto liability insurance.

Highest and lowest rates in 2005. According to recent studies, the five states with the highest premiums in 2005 were: New York, Louisiana, Rhode Island, Maryland and D.C. The five states with the lowest premiums in 2005 were: Maine, Iowa, Vermont, Idaho and Wisconsin.

What to do if you live in a high-priced area. Short of moving, make sure that you are getting all of the discounts to which you are entitled, such as:


* defensive driving and driver education courses for young drivers

* airbags and other passive restraints

* two or more cars on a policy

* your age and annual mileage driven

* policy renewal with a good claims and driving record

* anti-lock brakes

* a parent or family whose young driver is away at school without a car

* cars with automatic daytime running lights

* students with good grades.