We all know that the cost of your car insurance depends on a lot of factors, including where you live. 

The more densely populated the area you live in the higher your insurance rate. 

But one man recently moved less than 5 km in the same area and saw this insurance rates jump $600 because of it.   

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Steven Baker moved only 4 km away from where he was living in Toronto and a few days after the move called his insurance company to update his address with them. 

Pretty standard stuff, except that once his insurance company put his new address into a computer they increased his rate by a whopping $600.  

His rate went from $1,950 a year to $2,560.  

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His insurance company told him that the jump in cost was directly due to his new postal code. 

"A driver's behaviour and accident record is what they should be looking at. Not where someone happens to be parking their car," said Baker, who’s obviously pretty mad about the whole thing.  

Insurance rates are tied to numerous factors around your postal code, including how much traffic there is in the area and even what the average speed is in the area.  

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Busy streets are sometimes cheaper to live on because cars in traffic travel slowly and accidents don’t cause much damage. 

Baker says that he’s going to be looking into other insurance providers because of this whole situation. 

Source: CBC