Some people say... 
That’s why we want you to know... 
“I moved from the suburbs 
to the city and my auto 
insurance rates went up. 
What’s going on?” 
People who live in cities usually pay higher 
auto insurance premiums than people who 
live in suburban or rural areas. 
Why? Because car owners in large urban 
areas face greater exposure to loss. The concen- 
tration of people and autos inevitably results in 
more accidents. (Traffic experts call it "friction 
of the system.”) 
Theft and vandalism occur more frequently 
And the costs of hospital and medical care ; 
car repairs, lost wages ; and lawsuits— all the 
things insurance pays for— are generally higher 
in urban areas. 
Insurance companies want rates to be as fair 
as possible. Experience tells us the best way 
to do this is to charge policyholders higher 
or lower premiums according to their exposure 
to loss. 
So, in making auto insurance rates ; insurance 
companies consider the differences in costs by 
“territories” as an important factor. 
We sympathize with those drivers whose 
place of residence puts them in higher rate 
categories. But if “territories” were eliminated ; 
people who live in less congested areas and 
who ; therefore ; have less exposure to loss 
would end up subsidizing people who live in 
large urban areas and who have far g reater 
ex posure to loss. 
And we don’t think that’s fair. 
We’re working to keep 
insurance affordable. 
This message presented by the American Insurance Association, 85 John Street. NY. NY 10038 
©1981 American Insurance Association 
