Location is everything. This is a phrase that we’ve all heard many times, and it is usually applied to real estate. Why does one particular restaurant succeed while another identical restaurant a few miles down the road fails? Location, location, location. Well, this popular real estate maxim also applies to car insurance. And what your zip code is can dramatically affect the cost of your car insurance.

Our vehicles by nature are mobile. So why does the location where we park them help to determine our insurance rates? It has to do with the probability that you will file an insurance claim. Where you park you car is also the area where you will be driving about ninety percent of the time. Certain areas (such as cities) see a higher number of claims. In a city, there are more cars on the road and thus there is a better chance you will get involved in a collision. Also, there is a much greater possibility that your car will be stolen in a city. To account for this increased likelihood that a motorist will file a claim, a car insurance company will charge higher rates.

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Of course, how an auto insurance company factors your location into your rate goes beyond simply a rural vs. urban calculation. Car insurance companies use a complex formula with far too many variables to list them all here. What it basically comes down to is that motorists who live in certain parts of the country will pay less on average for car insurance than their peers in other geographic areas.

Insure.com recently complied a list of the cheapest states to buy car insurance. This list is based on the average cost of insurance for a forty-year old male with good driving record good credit rating and is a person that has twelve mile daily commute to work:

1. Maine $902.85

2. Vermont $968.58

3. Ohio $999.86

4. Wisconsin $1,010.93

5. New Hampshire $1,011.23

6. Iowa $1,039.04

7. Massachusetts $1,043.80

8. North Carolina $1,130.45

9. Arizona $1,152.50

10. Tennessee $1,170.12

Now matter you live, you can still save on car insurance. Compare rates for the nation’s top insurers here at Cheap Quotes Car Insurance. Fill out multiple online quote forms and find the most affordable insurance possible. Whether you live California, Wisconsin, or Florida you can find the most amount of coverage for the least amount money Cheap Quotes Car Insurance!