Can Your State’s Terrain Affect Insurance Rates?

Many things determine the cost of your insurance premiums when it comes to car insurance. However, not all of these factors are in your control, so it’s important to know what affects the rates. In this article, we’ll cover if your state’s terrain can influence your insurance rates.

The Simple Answer

Simply put, yes. The terrain of your state can impact your insurance rates. However, it’s not easy to see why that may be the case if you don’t understand what insurance companies consider when establishing your rates. The terrain of your location impacts other factors that insurance companies consider rather than your area’s terrain directly affecting insurance rates.

Milage Difference

A big factor in your insurance rates is how many miles you’ll drive every year, and the terrain can significantly impact that. A hilly or mountainous region may have twisting roads that cover more distance than an urban city, so mileage can drive up prices. Many roads, like gravel paths, aren’t fuel efficient and may impact your insurance costs.

Likelihood of Accidents

Every state tracks the likelihood of accidents in each location, and your insurance company will look at that information when making your rates. So, if you live in a city with a lot of dangerous turns or terrain features, you can expect a higher insurance premium. The company takes on more risk to cover you.

Other State Factors

Alternative factors aside from the terrain in each state influence the cost of your insurance. Things like population density or rates of drunk driving accidents can significantly impact your insurance rates. Also, some states have punishments for people who drive under the influence, like the Washington SR-22. You can get affordable SR22 insurance in Washington to offset the costs.

As you can see, the terrain of your state and other factors can impact the cost of your insurance. It’s important to know what impacts insurance rates before you move to a different state so you can factor the insurance rates into your decision.