When you live in a city, you are probably surrounded by people of every sort, and the population density is much higher. This means that, compared to cars parked in the garage of a suburban home, cars parked on city streets are more likely to become targets for car thieves, vandals and reckless drivers. Because of this, insurance rates in cities are frequently much higher than they are in suburban and rural settings.
More cars on the streets means a bigger risk of an accident.
Just the sheer volume of cars within a city makes the chance of an accident much greater. Even the best drivers cannot always avoid an accident if a stop sign or signal is ignored by another driver. Because the risk of an accident is many times higher in a city, the insurance rates of those living there will be much higher than their rural or suburban counterparts.
The odds of a lawsuit following an accident increase in the city.
There are people who really believe that they should sue every chance they get. Even if the accident is small, people may claim back or head injuries and seek a large settlement. Whether the suit is settled in or out of court, it still adds cost for the insurance company. Because those who like to sue need a ready supply of targets, they can usually be found in cities because of the high population concentration.
The presence of gangs in most major cities means that car theft and vandalism is likely.
Whether the car is stolen or damaged by vandals, the insurance company will still be on the hook for a potentially large claim. A thrown rock or a key used to mar the paint will often result in the payment of an insurance claim. If graffiti is painted on a car, it will have to be repainted and repaired. This translates into cost for the insurance company. When the insurers are hit with more claims, the rates will invariably rise.
Cities also produce a concentration of pedestrians and property.
With more people on foot and large amounts of property, the odds increase that someone or something will be hit. Again, damage to a person or property will create an insurance claim. From the driver’s perspective, this may be a purely liability claim. However, if it is large enough, insurance premiums will have to be increased.
Even if you are a safe driver, the city is filled with those who like to take risks when behind the wheel of a car.
Regardless of your personal driving record, you will be penalized for living in the city. Insurance companies have to look at the complete picture to develop the proper insurance rates. While you may have a completely clean driving history, the driving history of the city is not clean. Anyone who lives in the city and owns a car will be charged an insurance rate that reflects the added risk of the city.