Car insurance companies look at a lot of information when deciding premiums, and they'll often pay special attention to a driver's home state and address. Your address can have a tremendous bearing on the amount of money that you spend on car insurance and the coverage that your policy offers. Unfortunately, most drivers don't have much control over their addresses--there are very few insurance policy holders willing to move just to find a better rate. However, understanding how your address affects your car insurance costs can help you to better understand your policy, and you may even be able to save some money by knowing why your premiums are high (or low).
One of the first and most important things to know about your address is the insurance law in your home state. Insurance law has a tremendous effect on insurance costs. States with more laws that govern how an insurance company can operate generally sport higher car insurance premiums on average; however, in states with too little regulation, it can be hard for some drivers to find policies, and making a claim on an insurance policy can be a nightmare. You can find out more about your insurance law from your state's insurance commission, and it's usually wise to do at least a little bit of reading in this area; it's good to know your rights, and if you've got very high insurance rates due to over regulation, you can at least vote against new laws when possible.
Insurance companies also look at the amount of auto theft in your home state, town, and street. In areas with high rates of auto theft, premiums for comprehensive coverage will be much higher. There are certainly ways to guard against this, either by looking into anti-theft devices or by parking your car more responsibly. Most insurance companies will ask whether you park in a locked garage, and they're asking because they're concerned about theft. Keep your vehicle safe from thieves, and you'll probably enjoy some relief from high car insurance premiums.
There are other ways that your address affects your premium and coverage, from environmental factors to traffic statistics in your area. In general, the more claims that people are making on average, the higher premiums will be. All drivers can better control their policies by understanding these factors and taking steps to decrease their risks from an insurance company's point of view. Ask your insurance agent for more information--there's a good chance that you can decrease your car insurance premiums immediately with some forethought and a light amount of work.