Car insurance buyers should know that, just as with real estate, location really matters when comparing car insurance prices. Why will a driver pay a different premium if they live in a small community or a large metro area? Of course, insurers keep statistics on the amount of claims in an area, and also the expense of those claims. Insurers want to offer competitive prices, while charging enough to be profitable, and so they use these statistics as part of the formula to calculate rates.

Area Car Insurance Rates May Be Affected By:

• The number of accident thefts.
• The cost to settle accident claims.
• The amount of car thefts.
• Estimates of the number of uninsured drivers.

Of course, individual drivers within an area will pay different rates depending upon other circumstances like their age, personal driving history, and even the type of car on the policy. But given identical drivers, rates in a small town in Iowa will probably be lower than those in New York City or Los Angeles.

Why Would Car Insurance Rates Ever Decline?

Most of us do not expect our rates to decline, even though we would all welcome the lowest possible bill every month! But some surprising statistics have shown, in some areas, rates have declined over the last couple of years.

What Makes Auto Insurance Rates Go Down In An Area?

• Improved Auto Safety Features In New Cars Reduce or Prevent Claims
• Improved Anti-theft Devices or a Reduction In Car Thefts.
• Better Defensive Driving Education.
• Tougher Enforcement of Traffic Laws, especially Driving Under The Influence Laws.
• Increase Competition from Multiple Auto Insurers.
• Advances in Technology that make Insurers More Efficient

Have Your Rates Gone Down?

Well, your area may not be one of the lucky places that get to experience a decline in auto insurance premiums. But you can not always count on your old insurer to offer you the best deal. Another insurer may be working hard to gain a market advantage, and you can save money by finding that company!

Has this helped? Please let us know. In addition consider using our FREE QuoteClix.com quote service to find a cheaper car insurance policy. Insurance rates keep going up and we have contacted insurance companies in all 50 states to help find the best price for your car insurance.