Are Auto Insurance Costs Affected by Where You Live?

The calculation of an auto insurance premium is a complex process, and a number of different factors are taken into consideration. While details such as your age, vehicle and driving record are crucial to the process, where you live is equally important. An insurance premium is a reflection of risk, and it stands to reason that location is a determining factor in assessing how likely you are to make a claim.  

Living in Austin TX

City dwellers will usually be faced with higher auto insurance premiums due to the increased chances of making a claim. As you know, in Austin, traffic is crazy which greatly increases your chances of being involved in an auto accident. Generally speaking, your vehicle is also at a higher risk of being stolen or damaged in the city, as crime rates are far higher.    

Local Weather Patterns

Drivers who live in areas that are prone to regular inclement weather could also be hit with higher auto insurance premiums. Living on flood plains, in areas susceptible to storm damage or on higher ground where deep snow is guaranteed during winter will mean your vehicle is exposed to a higher risk of damage or loss. Extremes in weather will also lead to dangerous driving conditions, increasing the risk of your involvement in an auto accident.    

Local Services

The quality and availability of auto-related services in your area can directly impact the insurance premium you pay. For instance, in certain parts of the Austin area, where the response times of emergency services are poor, your insurance company may take the view that your vehicle stands a greater risk of damage or loss. An area's record of road maintenance, the number of intersections it contains and badly designed road networks can all influence insurance costs, so it is worth investigating these issues before deciding to move into a particular area.

The Area's Record of Litigation

Insurance companies face ever-growing litigation costs, as people involved in auto accidents continue to claim for bodily injuries, distress, loss of income and anything that is deemed to be related to such an incident. Areas with a particularly high concentration of litigation lawyers will be seen as high-risk by most insurance companies, and this will inevitably lead to higher premiums.  

It is also worth noting that adjacent ZIP codes in Austin can have very different crime rates, and that can lead to a situation where two drivers living a matter of yards from each other are quoted considerably different auto insurance premiums.   

If you are concerned that your address could be affecting your Austin auto insurance costs, call Cap City Insurance Services now at 512-222-5508, and one of our expert agents will be happy to discuss your options with you.