Car insurance can be a confusing set of endless amounts of information; things that a person can do to lower their insurance rates, factors affecting insurance, different types of coverage, etc. But one thing is for sure, the location is important when it comes to insuring a car. Car insurance variations by location may be the single most crucial factor in insurance rates that are of the drivers hands.
Insurance premiums may vary from state to state and may sometimes vary in large or large metropolitan areas. Car insurance is governed by the state insurance commissioner, and each state has its own rules and regulations for mandatory car insurance.
Each state regularly looks at a number of statistics and analyzes data over a certain period of time. This allows the Insurance Committee to assess risks and problem areas and adapt the standards accordingly for each location.
There are several components that go into the determination of risk factors, and thus an increase or decrease in insurance prices, depending on the location. One of the most important points for the insurance commissioner is the number of reports on engine types and subsequent vandalism and injuries. They also analyze the number of accidents for a certain period of time, as this directly affects insurance rates due to insurance claims in direct proportion to the number of reported accidents. The insurance commissioner is also likely to analyze climate and weather because extreme conditions such as ice and snow or flooding are likely to increase accidents and property damage. One of the minor factors that can affect insurance rates is the cost of car repair, which varies greatly depending on geographic location.
According to polls and data collection, there are statistically good and bad places to live in the case of car insurance. Although it is tempting to categorize these areas based on geographic location, many other factors come into play. New York, along with Washington DC, Nevada and Arizona, are among the top ten states with the highest insurance premiums for 2005. Although the population varies considerably in each of these places, personal data per square kilometer statistics is similar because they are all very high . Trends have shown that in areas with frequent populations accidents and crime rates are likely to increase. These areas are also famous for extreme weather conditions, such as winter storms and flaming heat. Iowa, Ohio, Virginia and Indiana, along with six other states claiming their title as the top ten states to live in considering car insurance. The crime conditions along with the weather conditions are quite calm and stable, leading to a noticeable reduction in insurance premiums, with on average less than half of New Yorks prices.
Another factor to consider when comparing insurance rates is not only the car insurance price but also the living costs and its subsequent compensation in terms of economic conditions such as minimum wages. For the ten most expensive states, the minimum wage is higher than the federal average, and also the minimum wage is comparable to the federal average of the states that rank the lowest in prize prices.