True or False: Vehicles located in areas known for high crime rates are likely to have higher insurance premiums.

The statement is true because insurance premiums are influenced by various factors, one of which is the likelihood of claims being filed due to crime. In areas with high crime rates, there is an increased risk for vehicle theft, vandalism, and accidents. As a result, insurance companies assess these risks when determining premium rates. They consider the frequency and types of claims that are likely to arise in a given area, and if a location has a high incidence of crime, insurers will typically increase premiums to cover the anticipated increased risk. This is done to ensure that the insurance company remains financially solvent while still providing coverage to policyholders. High-risk areas necessitate higher premiums as a protective measure against potential losses.