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Neighbourhoods and Auto Insurance Rates

Neighbourhoods and Auto Insurance Rates

​Where we live matters to us. That’s just as true when it comes to the cost of auto insurance. Premiums can vary from neighbourhood to neighbourhood and from city to countryside.

​While many factors are considered in the pricing of your auto insurance policy, location is an important one.

For example, people living in the city generally pay more for insurance than people in rural areas. This is because auto premiums are largely based on factors tied to the frequency and amounts of claims payouts. Since cities have more people, they have more collisions. If there are more collisions in a certain area, the cost for insurance will be higher since the chance of a claim is greater.

Overall crime rates in your neighbourhood also play a part in auto insurance costs. If you live in an area with high crime rates, the risk of your car being vandalized or stolen is greater. This will affect your premium. However, your premium could be reduced if you install an anti-theft device in your vehicle.

Learn more about how auto insurance premiums are calculated.