That's part of it. In general, if you're a city dweller, your premiums may be higher than those of people who live in the suburbs or rural areas, because statistically, you are more likely to have an accident in city traffic. But, that's only one of the factors that can influence your rates. In some areas, your age, sex, and marital status are important factors. Drivers under the age of 25 are involved in more than one-third of all auto accidents and traffic fatalities.
Young females have fewer accidents than young males.
And married couples have fewer losses than single people. The way insurance companies price insurance reflects some of these realities. The kind of car you drive makes a difference, too. All of this is also taken into consideration when pricing insurance. Finally, there's the matter of your driving record.