Does Living in an Area with High Accident Rates Impact Your Rates

Does Living in an Area with High Accident Rates Impact Your Rates

The biggest factors impacting how much you pay for auto insurance are you and your driving habits. However, other factors can impact what you pay. If you live in a high-risk area, the insurance company may raise your costs. In some situations, this is nothing you can change. Yet, there may be a few ways to reduce your costs further. Keep a few key things in mind.

Why Are Rates Higher in Accident-risk Areas?

High-speed freeways and busy intersections create more opportunities for accidents. If you lived in an area with limited traffic, however, it is less likely you will be in a high-speed accident with another driver. High-speed accidents are usually the most expensive for insurers to pay out. Insurers generally have to charge those in high-risk areas more, in order to pay for those cost risks.

Considering this, contact your auto insurance agent. Inquire about risk factors in your area. This may come down to where you live, where you travel, and the type of vehicle you own. Be sure your policy matches the needs you have here.

This is one of the factors you may not have much control over. However, activism might help. You could help to reduce traffic through laws or help support laws to change the roadways.

What You Can Do About Your Costs

But, it may also be possible for you to adjust other factors to help reduce your rates. Here are some key ideas.

• If you don’t drive much, let your insurer know that. They may be able to reduce your costs with a low-mileage policy.
• Invest in tools that show you are a safe driver. This may include apps that track your speed while driving, security for the car, and records of your driving history.
• Find out if there is a good driver discount available to you. If you have a clean record, this can help to significantly reduce your insurance costs.
• Talk to your agent about other discounts you may qualify for right now. This includes bundling policies, anti-lock brakes, and safe driving courses.

Keep in mind that not all insurance companies apply these discounts to your plan. However, if you ask your car insurance agent for insight, they will tell you what factors are impacting your costs. They may offer tips for savings, too.