How do home insurance companies decide if an area has a high crime rate?

Where you live plays a part in how much you pay for car insurance. Areas with higher crime rates tend to have the highest premiums, but you do have options to lower your rates.

When it comes to determining the cost of homeowners insurance, the name of the game is risk. Insurance companies look at a ton of potential factors, from your location and credit history to your distance from a body of water, the breed of your dog, and what security features you have installed, to estimate the level of risk your home is exposed to—and the costs they might incur if they offer you a policy.

Chicago’s crime rates are above both state and national averages, but some neighborhoods rate as considerably safer than others.