Save Money: Location Discounts

Posted in Auto Insurance , Save on Auto Insurance

February 13th, 2009

Living in the country has many fringe benefits. The fresh air, lowered crime rate and sense of security is great. Financially, your home, food and insurance costs are lower as well. Those purchasing auto insurance in rural areas benefit from a location discount on their premiums.

Insurance companies develop their rate structure by following the statistics provided by actuarial tables. Younger drivers, such as males under the age of twenty-five, tend to perish in more car accidents than other demographics. For auto insurance, these tables track the mortality rate in small towns. By combining that number with the reduced risk factor of small town living, your auto insurance will be lower.

Those who live in more crowded urban areas are subject to higher insurance premiums. With a denser population comes more traffic, crime and a larger percentage of uninsured motorists on the road. The crowded streets and freeways of urban areas increase the odds of accidents, theft, vandalism and insurance fraud. Insurance companies use the statistical information to charge more for those insuring their vehicles at those locations.

Remember to ask for a location discount if you are in a less populated area of the US.