Car Insurance Breaking the Bank? Two Tips to Help Lower Your Premium

Carrying automobile insurance is a critical part of owning a vehicle.  Although it may hurt to pay those expensive premiums each month, you will certainly be glad that you did in the event that an accident occurs.  However, sometimes the price to maintain insurance on your car can become so steep that you may wonder how you're going to come up with the funds to pay for it.  Rather than continue to be bogged down by an excessively high insurance premium, use these tips to learn more about how you can get your payments down to a more manageable amount.

Your Zip Code Matters

If you think that your driving record, age and automobile type are the only factors that matter as it pertains to how much your car insurance company charges you to insure your vehicle, you may want to think again.  While these elements certainly make up a large part of your total premium equation, where you live may matter just as much, or even more.

Insurance companies employ actuaries who use complicated calculations to determine how much of a risk it will be to insure you.  Living in a zip code where there are a high number of vehicle break-ins or accidents makes insuring you more risky, sometimes causing your insurance premium to increase dramatically.

Moving to a zip code where there are fewer criminal incidences is not only safer for you; it can help you keep more of your hard earned premium dollars in your pocket.  You can check a website such as this one to research the average insurance rates of the people who live in various zip codes.  This can go a long way toward helping you save.

Don't Over-Insure

Another thing that causes people to pay too much for car insurance is carrying too much coverage.  While it is certainly good to make sure that your vehicle is adequately protected in case an accident does happen, you may be overspending for a car that doesn't warrant so much coverage.

For example, if you bought your car brand new, you more than likely purchased full coverage insurance.  However, if you've had the car for ten years, it may be a wiser financial choice to drop the comprehension and collision coverage on your car and simply carry liability.  Your insurance premium will decrease quite a bit with this simple gesture.

Automobile insurance should give you peace of mind, not cause you to go broke.  Use these tips right away so you can start saving money as soon as possible. For more information, visit