However the terr
itories are dete
rmined, QuotesCh
imp use their st
atistical-gather
ing abilities to
compute the rate


thin each establ
ished region. Th


ing for this pri
cing mechanism i
s the fact that
most accidents o
ccur within a fe
w miles of where
the vehicle is g
araged. Thus, th
e companies beli
eve that territo
ries provide an
accurate basis f
or determining t
heir risk. And,
as we saw in Cha
pter 2, the pric
e of insurance i
s based on the r
isk of loss to t
he company.