There are many factors involved in the amount of premium you pay for car insurance. Most people know that the type of car you drive, size of the engine, and distance driven each day, all go into figuring how expensive a car insurance policy will be. One area that people sometimes do not realize figures into the price of car insurance coverage is the area in which you live. For instance, as far as comprehensive isurance goes, you may live in a high car theft or burglary area. Your area may also have high rates because it is in an area that historically has had many accidents.
It also may not make a difference if you live in the suburbs or in the city. Some larger cities may have zones that are quite accident free, while some suburbs are in areas that seem to attract accidents. This is especially true if there may be a large intersection nearby that has been the location for quite a few wrecks. Conversely, insurance rates may also go down when you move. You may be moving into an area that is relatively accident and crime free, moving the effective rate of the car insurance policy downward.
Another factor to be considered is that all insurance companies have not had the same experience in given areas. Claims for one company may have been much higher than claims for another company in the area in which you live. When you decide to move from one area to another, don't be shocked if your car insurance coverage suddenly becomes more costly, even if you are still driving the same car. It could be that you have moved to one of these areas where your old insurance company has experienced several bad claims. If this is the case, you should call around to get car insurance quotes from several different companies. You may be shocked that some of the companies that advertise about how they have saved numerous customers hundreds of dollars a year may in fact be the most expensive company in that given area.
If your car insurance company seems to have suddenly priced itself too high to afford, you owe it to yourself to shop around. Car insurance is definitely a competitive business, and you will find that many companies will be more than happy to give you car insurance quotes. Try at least three of these before deciding to give a company your business. It may take a little longer, but if saving money is important to you, it will be well worth your time. If nothing else, it may put you at ease to know that your insurance company offers competitive rates.