Location determines car insurance prices!?

[zeronero]

I am currently looking for new car insurance and to do so went to a website called "esurance".

I decided to look up estimates using three different location here in California. I used Sherman Oaks (LA Area), Menlo Park (Bay Area), and Clear Lake (a rural area).

I used the same exact criteria for each estimate, the only thing that changed was the zip code. Here are the results for a 6 month term:

Clear Lake (a rural area) $292
Menlo Park (Bay Area) $373
Sherman Oaks (LA Area) $576

I didn't think that the difference would be so much, I thought maybe up to a $50 difference between them all. I recently saw a news report about a law that bans insurance companies from using location as a rate basis but isn't inforced, WTF is that!

Anyway I'm thinking of using a different, cheaper location than where I live as my location, what bad can come of this?