Why Does My Car Insurance Increase Based on Where I Live?
Insurance companies will increase or decrease your car insurance premiums based on where you live by determining what is called your “territory group”. Insurance companies have found that those that live in highly populated areas are more likely to be involved in an accident as opposed to those that live in rural or less populated areas. Here are some of the reasons why:
- More cars on the road increases your chance of an accident or physical damage
- Higher population increases chance of theft
What some unscrupulous individuals try to do is change their “home address” on their car insurance application to a relatives or friends who lives in a rural area. However, these people can be easily caught if the insurance company ask for a copy of your driver’s licence. They also may become suspicious if you are involved in multiple accidents in another city.
