Location affects auto insurance a great deal. The most typical case is where you live, as this is one of the things that helps insurers figure out how to set rates. As an example, people who live in a city with lots of claims will tend to pay more than those who live in a small rural community. Where you park your car can be another example of how location can affect your rates. Some providers may ask where you keep your vehicle, then factor it into your costs. Most others may simply wait for you to file a claim before it impacts anything.