A lot of drivers have considered that where you live can increase your insurance rates. If you are in a city that is well known for a high number of accidents and car thefts, you will pay more. How much more is what most people do not even think about. Most drivers would be surprised to find out that car theft capitals are not the only high risk areas of the country where rates can be astronomical.
The New Jersey Department of Banking and Insurance is offering a comparison tool to show consumers how insurance rates vary. Using the tool, OnlineAutoInsurance.com got 56 individual quotes from different insurance groups. All factors were equal except location. The website found that premiums could vary by as much as $1,200 based solely on where a person lived. Click here to get a NJ car insurance quote.
Insurance companies claim that the variance in rates is justified because of the higher traffic density and crime in larger areas where rates are highest. That is kind of punishing a driver for living close to their job, isn’t it? The policy may have its points and virtues, but it makes it more difficult for an urban dweller to afford insurance and could be contributing to skyrocketing numbers of uninsured motorists.