The determinants of insurance consumption have been extensively studied, yet spatial correlations are rarely considered within this framework. In this paper, we discuss several channels through which spatial dependence may arise and then test for spatial dependence using six years (2009-2014) of province-level data from China. Results suggest that spatial spillover effects are large and have the potential to seriously bias marginal effect estimates if neglected. Specifically, when regions experience similar changes in determinants, marginal effect estimates in spatial models are roughly 1.5 times that implied by aspatial models. Moreover, the findings of this study demonstrate that properly modeling spatial dependence is of paramount importance in accurately assessing the impact of insurance consumption determinants.