How Does My Location Affect My Insurance Rate?

Did you know your location impacts your insurance? Location can play a role in different insurance rates, as risks vary by where you live or by where you keep your vehicle. In some cases, repair or replacement costs can vary as well. Here are some of the common types of insurance affected by location.

Home and Renters Insurance

Home insurance providers may consider thousands of variables when setting a premium for your policy, but location can play a big role. If all other rating factors are equal, a home in a higher-risk area likely has higher premiums than the same home located in a lower-risk area.

Weather: Storms, snow, wildfires and nature-related risks affect rates for home insurance. Homes near the coast, for example, often pay higher rates or have higher deductibles.

Distance from fire department: Homes closer to a fire department may pay lower insurance rates because a quicker response can lead to less damage and a smaller claim. 

Labour and supply costs: The cost of labour varies by area, as does the cost of building materials. A homeowner’s insurance policy insures the cost of rebuilding your home, meaning rates may be higher or lower depending on the cost of labour and materials in your area. 

Crime statistics: Both homeowners and renters insurance policies insure against vandalism, theft, and theft damage. Homes in areas with lower crime statistics may see lower rates.

Auto Insurance

Your location can change the cost of your auto insurance policy as well. Coverage is unaffected by your location, but it can play a role in your premium.
 
Repair costs: Labour costs vary by area, which plays a role in the cost of your policy if you carry collision or comprehensive coverage. 

Crime statistics: Theft rates for vehicles play a role in the cost of comprehensive coverage, which protects against vandalism and theft. Vehicles kept in areas with lower crime rates may find lower rates. The good news is this likely only affects comprehensive coverage, which is one of the least expensive types of auto coverage. 

Congestion: More vehicles on the road often translates into a higher overall accident frequency. Higher risk can mean higher insurance rates in more congested areas. 

Location-specific requirements: Overall premiums can be affected by local requirements set by each province. For example, some areas may have higher liability insurance requirements.

While you can’t change your location, there are ways to help offset these premium changes. For example, having smoke detectors or deadbolts installed can earn a discount in many cases. If you have not reviewed your coverage lately, reach out to your agent or broker to schedule a policy review, or contact Access Insurance! We are here to guide you every step of the way.