A higher number of accidents in a highly populated area will raise both liability and collision premiums. Higher crime rates in urban areas can also raise premiums for comprehensive coverage. The law also allows companies to base your rates on your address (where you keep your car), even though you may drive to a more urban or rural area.
The number of miles you drive per year can increase your rates. For example, if you drive a total of 7,000 miles in a year, you will normally pay lower rates than if you drive 15,000 miles in a year. Insurance companies consider the distance you commute to work as additional miles you add to your non-commuting, “pleasure” miles.
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