By now you should be aware of the fact that car insurance is regulated at the state level. For this reason, auto insurance quotes often vary immensely depending on where you live. Before you get into checking free car insurance quotes, it is essential to understand how location will impact the rates you get.
Fortunately, we are here to help you find answers to some of your burning questions. Below are some of the ways locations affects car insurance quotes and what you can do about it to save on your policy.
State Minimum Requirements
Nearly every state has different minimum coverage requirements to legally operate on the road. In most states, you will have to require with your bodily injury and property damage liability insurance, even though the actual coverage limits required can differ. The higher the coverage limits needed, the more expensive the policy.
Some states and cities also require drivers to carry with them uninsured and underinsured motorist coverage or personal injury protection (PIP). This type of protection has the potential to increase your protection and also add to your car insurance costs.
Local Risk Data
Before taking a look at free car insurance quotes, you need to remember that insurers all have their own proprietary ways of assessing risk, bundling coverage types and pricing auto insurance quotes. This explains why some companies tend to cost more than others, and why some companies aren’t available in every state.
Some states may also have more statistically high-risk drivers than others. In the event that a state, a city, or even a particular neighborhood has a high frequency of accidents and claims, insurance agencies will increase quotes there based on their own risk calculations.
We can never conclude without mentioning the fact that insurance companies price quotes based on the likelihood of claim filings in an area. Denser urban areas with narrower roads and more vehicles tend to have more car accidents and claims. No wonder drivers in large cities often get higher quotes than those who reside in rural communities.