Why it might cost more to insure a car in a city than in a suburb

Be prepared for your costs to go up if you move to a city.

Many people migrate from cities to the suburbs as they age or their families expand. But you may end up in the opposite situation, where you are moving from a suburban area to a city.

Maybe you’re accepting city life to be closer to your job. Or maybe you’re bored of the suburbs and want a change.

In some cities, having a car is not so necessary. That’s because you can turn to public transportation and save yourself a lot of money in the process compared to owning a car.

But you might want to hang onto your vehicle once you settle into a city. You might need it for errands, weekend trips, or even your commute if your office is in a suburban area that you can’t reach by bus or train.

You no doubt know that car insurance is one of the biggest expenses you will face when owning a car. But you should also know that if you move from a suburb to a city, your car insurance rates could go up. Here’s why.

1. Crime rates could be higher

Although this is not always the case, it is often the case that crime rates are higher in cities than in suburbs. And that means your vehicle is more likely to be stolen. This is something that car insurance companies know to take into account. And so you may find that because of this added risk, your premium costs go up.

2. The population can be denser

Cities tend to be more crowded than suburbs. And the more cars on the road, the more likely an accident will happen, or at least that’s the logic your auto insurer may use.

3. Street parking may be the norm

It’s not a given that people who live in the suburbs park their cars in their garages. Homeowners often use their garages for storage and leave their cars on the street. But in cities, street parking is often the norm. And this could lead to more theft incidents. The result? Higher auto insurance premiums.

Be prepared for your costs to go up

Keeping a car in a city can cost more money than expected not only in terms of car insurance, but also in terms of things like having to pay for parking. So, before you make the decision to hang on to the car, run the numbers to make sure owning one is still affordable.

If you need a car to get to work every day, you probably have no choice but to keep yours. But if you only need that car for errands or occasional outings, you might want to see if it’s more cost-effective to simply request a carpool every time you need a lift and the bus or train just won’t do.

The average cost of owning a vehicle is $10,728 per year, according to AAA. If you end up spending $100 a week on carpools, you may end up reaping savings compared to the cost of car ownership, especially if a move to a city causes your auto insurance premiums to skyrocket.