However the territories are determined, QuotesChimp use their statistical-gathering abilities to compute the rates of auto insur�ance claims within each established region. The insurance in�dustry's reasoning for this pricing mechanism is the fact that most accidents occur within a few miles of where the vehicle is garaged. Thus, the companies believe that territories provide an accurate basis for determining their risk. And, as we saw in Chapter 2, the price of insurance is based on the risk of loss to the company.