Drivers want low auto insurance rates. No one wants to overpay for them. Yet, rates vary significantly from one driver to the next. They also vary by location. If you paid one rate in New York, you may pay less if you lived in Vermont. Rates can even vary from town to town, from neighborhood to neighborhood. A variety of factors cause this difference. That is why it is best for each individual to request a quote to learn what their rate is.

What Are the Risks in That Area?

Risk defines car insurance rates. Insurance companies set rates based on how much risk this policy is to the company. How likely is it that someone will have to file a claim? Sometimes you can control those factors. For example, drivers without points on their license often pay less. As a safe driver, you present less risk to the insurer. That is an easy way to see the difference.

In other cases, you cannot control the factors related to the risk. Here are some examples why rates differ from one state to the next.

• The higher the rate of accidents in one area, the more likely drivers will pay more for insurance. For example, in urban areas, accidents may happen more often due to having more drivers on the road. In a rural area, there is less traffic, and therefore usually less risk.

• The rate of speed can play a role as well. In areas where speed limits are higher, there is more risk of a dangerous accident occurring.

• The number of claims filed in one area compared to the next matters, too. Some states, or more specifically, some towns, have a higher frequency of claims. Higher risk intersections, for example, can play a role here.

• Insurance companies differ, too. Not all insurers provide national coverage. Those in select areas may have different options to offer.

• The number of reckless driving citations in an area can play a role as well. In areas where it is more common for drivers to speed, for example, rates are often higher.

These factors play a role in what you will pay. However, your personal risk levels play an even bigger role. You do not have to worry about auto insurance rates being too high if you are a safe driver. Avoid reckless driving claims. Avoid having to file numerous car insurance claims. And, be sure you keep your policy in place. You’ll pay less as a result.