Where you live or, more precisely, where you keep your car at night has a bearing on your chances of having an accident or becoming a victim of theft or vandalism. That's why a vehicle owner in Manhattan, New York, pays a higher rate than the owner of an identical vehicle in a rural less populated area. Other factors affecting regional insurance rates include time and efficiency of police response and law enforcement, local road and traffic conditions and the quality of local medical services. Most insurance companies factor in the litigation rates in a given area--that is, how many lawsuits are filed, go to trial, are settled out of court and for how much.

Why are rates different for different cars, even if the cars cost the same? Vehicles are also grouped into categories according to their chances of being damaged, vandalized or stolen. Insurers generally consider the size and type of vehicle, as well as the value and the cost of repairs which vary greatly, even on vehicles that cost about the same amount. Therefore, it is assumed that a new sport utility vehicle is expected to hold up better in an accident than a sports car or a subcompact or electric hybrid car.

Putting insurance aside for a moment, safety is key when buying an automobile. Your life and everyone who rides with you depends on it! Some cars are considered safer than others because of their performance record in safety tests and real accidents. That is why you consumers should research insurance coverage before you buy your car. It helps you to understand the actual cost and indicates those vehicles with good safety records. Your insurer will ultimately reward you for putting safety first.