If you move from one city to another, your auto insurance rate will likely change even if nothing else on the policy does. This may seem a bit strange since you often hear that auto insurance rates are based on your vehicle and driving record. Most people forget that location is one of the three major insurance factors. Here’s why location matters for Massachusetts auto insurance rates.
City Versus Suburban and Rural Areas
If you live in a rural area versus a city, two major things will differ. The first is the conditions under which you drive. Rural areas have less traffic and people drive differently (probably less aggressively) than in the city. Secondly, where your car is parked will be subject to different risks. You may be less likely to have your car broken into, vandalized, or stolen in a rural neighborhood than in a busy city. These two examples illustrate why location matters for Massachusetts auto insurance.
Where you live and where your car is parked every day has a risk associated with it. Living in those areas means that you are more likely to be a victim of a crime or involved in an accident. Your chances of filing an auto insurance claim are naturally higher, as a result. This is based on historical data on accidents and claim filing trends.
Summary of Why Location Matters for Massachusetts Auto Insurance
Individuals who have filed more claims in the past or are more likely to file future claims because of where they live are subject to higher insurance premiums. So, even though you own the same car and your driving history remains the same, your auto insurance premiums can change when you move from one city/town to another. It can go up or down depending on how the new location compares to the old one from a risk perspective. Insurance pricing is about risk and statistically, location is a key risk factor.