While many factors contribute towards the pricing of your policy, your location is an important one. Did you know that where you live can impact your auto insurance rates? The kind of neighbourhood you choose can play a significant role in deciding how much you need to spend on your vehicle insurance. Thus, it is important to provide accurate personal information when seeking a quote for your insurance policy. Also, if you happen to move, make sure to update your information in the insurance database. We bring you some top reasons why your address matters to your insurance company:

1. City Life vs. Rural Life
People who live in the city tend to pay more for insurance compared to those who stay in rural areas. Auto premiums are often decided by the frequency and amounts related to claim payouts and cities tend to have more collisions because they have more people. Even within the city, if the collision rate is higher in a particular area, the cost of insurance is higher as the chances of claims are also higher.

2. Local Traffic
Depending on where you live, your insurance companies get an idea of your commute. If you live in an area with heavy traffic or in a neighbourhood where accidents occur frequently, you might have to spend more on insurance compared to someone who lives in an area with light traffic. Insurance companies also periodically check the number of accidents in your area. If the number has gone up or down in recent times, your premiums will also be raised or lowered, as a reflection of these numbers.

Generally, if your commute to work is more than 15 minutes, your insurance premium might be increased. The thought is that the longer you are on the road, you’re exposed to higher risks, thus leading to higher rates.

3. Crime Rates
Grand theft auto has been one of the leading reasons for claims in Alberta. When you give your personal information, an insurance company will check with the local police to find out the crime rates in your area. Those living in neighbourhoods with a high crime rate will be prone to vandalism, break-ins or theft, thus increasing their premium rates.

4. Local Roads
The insurance company might also consider whether the roads in your locality are well-designed and well-maintained. Roads with too many potholes and dangerous intersections can lead to accidents and insurance claims. On the contrary, having smooth and safe roads will help you get lower insurance rates for your vehicle.

5. Population in the Neighbourhood
If the population in your neighbourhood is high, you will have to shell out more for your car insurance. This is because more cars mean more fender-benders. In areas where the roads are relatively empty, you’ll get your insurance at a lower rate.

6. Weather Conditions
Snow and ice often translate into crashes and skids for car owners. Bad winters in your area can increase your premium rates. However, it’s not just rough winters that can impact rates. Flood-prone areas can also mean high premiums for car owners. In areas where hailstorms are common, cars get pockmarked, leading to additional claims and thus, higher rates.

7. Your Parking Spot
If you park your car in a garage or a covered parking spot, your premium rates will be lower compared to those who park their cars out on the streets.

You will be surprised at the location-related factors that influence your auto premiums. It’s always beneficial as a car owner to have complete information related to what bumps your premiums.