Question

why does geographic location affect the cost of premiums? (1 point)
there are less car mechanics in certain areas so the cost to repair is higher.
because people in urban areas tend to buy flashier cars.
because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.
because insurance companies believe that people in urban areas should use mass transit

Explanation:

Insurance companies base premiums on risk. Geographic location affects risk. Areas with higher accident or theft claims (from statistical history) mean higher risk. Higher risk leads to higher premiums.

Answer:

Because insurance companies review the statistical history of claims for an area and if there is an increased risk of claims for accidents or theft, they will raise the premium.