How your quotes depend on your house and car location?

Auto insurance quotes can easily confuse just any car owner no matter how experienced or insurance-savvy. With so many factors in the play it's often hard to wrap your head around all the variables and predict what auto insurance quotes you will get when shopping around. But what's more interesting is the way auto insurance quotes tend to very depending on the car owner's location. A 10-mile difference in residence can result in substantial rate difference, especially when speaking of state borders. Too many car owners tend to get annoyed by such a fluctuation and blame insurance companies for unfair business practices. But before you consider joining such accusations it's better to do a little homework and learn why exactly auto insurance quotes are so tightly linked to the car owner's location. Laws, costs and business activity First of all, you have to understand that insurance companies are forced to play at a field where the rules are different in every corner. Each state has its specific legislation and mandatory requirement regardless auto insurance, and this of course is reflected in the average insurance costs across states. Sometimes the minimal requirements in neighboring states can differ to the point where the difference in final rates will be double. But that's not the only factor contributing to the wild fluctuation in auto insurance quotes. There are also implied costs such as medical and repair fees, which also contribute to the final rates charged by the insurer. And there's also the overall business activity and competition on the local market, which define the insurer's pricing strategy for each particular region. All these macro and microeconomic factors contribute a great deal to the pronounced difference between auto insurance quotes in different locations. Traffic load and accident risk Besides the economic factors there are also statistical and technical factors that have to be taken into consideration. First of all, you have to realize the probability of having an accident with respect to how heavy the traffic is in your area. It's apparent that the more cars there are on the road the more likely it is to get hit or hit someone else. That's why the large urban areas with heavy traffic always have the highest auto insurance quotes, especially when compared to rural areas. On the other side of the spectrum, areas with low population and traffic density are always more affordable in terms of insurance since there aren't many accidents taking place where there aren't as much cars to deal with. Find more at Nexttimepolicy.com Theft and crime rates An additional factor that often escapes the attention of insurance company critics is the crime aspect of the business. Insurance companies have to deal with theft claims on a regular basis and it's estimated that around 20-25% of the premiums paid by customers are used to cover the costs associated with auto theft. Now, the crime rates differ a lot from one place to another and it's evident that areas with higher theft rates will always have higher auto insurance quotes than others. That's exactly the reason why insurance quotes can differ a lot even within a single city: some neighborhoods just cause too much trouble to insurance companies and they are forced to increase the average quotes there just to cover their costs.