As a general rule, living in the cities is more expensive in comparison to towns and countryside. Many things like rent, property prices, restaurants and car insurance are higher. However, there are more opportunities in larger places. The reasons behind these costs may not always be the same but they are nonetheless the case. Many people living in the crowded city centers increase the competition for the services and their costs. In the same way, it increases the likelihood of little fender benders.
Driving in the City vs. Countryside
Statistically, city drivers are more likely to claim on their auto insurance than countryside ones. Generally, these claims are smaller but they add up pretty fast especially when the administration costs of dealing with them are added up. It seems that accidents in the countryside are fewer but more fatal in comparison. That may be on the account of the faster moving traffic in rural areas compared to highly congested cosmopolitan areas.
Country drivers live and work in their small communities so that they do not have to commute to work every day. The shorter the commute is the less likely to have accidents. Most properties in rural areas would have garage or off-street parking which is premium in the cities. When you can park it nicely off the road and in front of your home, automobiles are safer from theft, vandalism and accidental damages.
Crime and Other Factors
Automobile insurance companies lose a lot of money due to criminal activities. Rural areas have lower crime rates. There are more vehicles stolen in the cosmopolitans in comparison to small towns where most people know each other and their automobiles. It is harder not to be noticed and get away with things in smaller places. On the contrary, in highly populated areas people do not even know their next-door neighbors. This makes life easier for the criminals.
They also like to live in cities as they can take advantage of many different operators there. It is easier to find other criminals that will lead to small underground crime units. People can form a small team where some steal cars, some dismantle them and others sell the parts. This will as a result increase the theft in the larger locations.
Furthermore, vandalism and accidental damages from other people are higher as well. Generally, cars are left on the streets day and night due to lack of private parking. As many people pass or drive by, the chances of causing damage to these cars are higher. Many times, people find their cars damaged in the car parks or on the streets and they do not even know how that happened.
Auto Repair and Other Costs
Costs of auto damage repairs are much lower in the country. The labour, premises rent and other expenses are lower, so garages can fix cars at more affordable prices. This in turn costs less to auto insurers and they charge less premium to their policyholders. Even medical costs can be lower for the similar reasons mentioned above.
However, public transport is widely available in the cities. Especially families can do with keeping only one vehicle. While they have a car to get heavy shopping or drop children to school, for commuting public transport may be more convenient. It also becomes extra important to keep clean driving records when the rates charged higher in your zip code.
People are often shocked when car insurance rates change after moving from a sleepy town to a roaring cosmopolitan. At times, even a few blocks can make a difference if it falls in a totally different zip code. Actually, people on the other side of a river can be in a totally different state in the US. So, where you live affects vehicle insurance rates a lot.