Though there are numerous factors to consider while calculating the premium for an insurance policy, the primary ones are – first, from whom you are purchasing the plan and secondly, how much sum assured you are insuring for. There is one more key factor that plays a part but largely goes unnoticed – where you live.Your current location of residence and pin code shares a fair bit in deciding the premium, as it underwrites the exposure to risk. Let’s look at some of the insurance categories where the premium may change because of the place where you stay.
Motor insurance
The city where you register your car influences the amount of motor insurance premium you pay. ‘Insurance zones’ are created by insurers, depending on the vehicle’s exposure to damage or loss. Because of the high probability of theft and accidents in metro cities, urban drivers pay more for car insurance than those living in small towns or rural areas.
