How Do I Reduce Car Insurance Costs In My ZIP Code?

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Getting your car insurance rate usually starts by entering your zip code with most insurance providers. Ever wonder why?

That’s because where you live is the start of most base car insurance rates. If you live in a populated area with lots of roads and traffic, then accidents and insurance claims are higher – especially when compared to a suburban or rural area without much congestion on the roads.

The chance of being involved in a car accident is just much higher, no matter how safe of a driver you may be. If you’re in the city with lots of other cars, the chances of you being in an accident on the road go up.

So short of moving out to the suburbs, what can you do to reduce car insurance costs if you live in a densely populated zip code?

Here are four things you CAN do to reduce your overall auto insurance costs:

Have A Great Driving Record

If you’re a safe driver, you’re going to get a better insurance rate than someone who has had several accidents and claims or minor violations. MAPFRE offers value programs like Accident Forgiveness, which can help prevent your premium from increasing after an at-fault accident.

Be Smart With Your Money

Do you pay your bills on time? Do you keep your credit balances low? People who manage their finances, tend to have fewer claims. That’s why establishing a good credit history can help you reduce your insurance costs. You should check your credit rating on a regular basis and have any errors corrected as soon as possible.

Drive A Safe Vehicle

Part of your car insurance premium is based on what vehicle you drive. How much did it cost to purchase? What is the safety record for your car’s make and model? What is the average cost to repair that make and model for different kinds of accidents? What’s the likelihood that your car’s make and model will have a break-in or be stolen?

When you buy a car, whether it’s new or used, you should check what typical car insurance costs are for that make and model. The Insurance Institute for Highway Safety (IIHS) is a great resource for evaluating vehicle safety when you’re car shopping.

Maximize Discounts

When evaluating your car insurance, make sure you take advantage of any car insurance discounts you qualify for. Many car insurance companies offer discounts for safe driving, paying your bill in full, and even customer loyalty. Always make sure to check for any new or better discounts on renewal.

So unless you’re contemplating moving to a far more rural zip code, these are a few things you have a bit more control of. These four factors are aspects of determining car insurance rates that you have the ability to control a bit more easily. If you have a great driving record, are smart with your money and drive a very safe vehicle – you’re viewed as a far safer driver. Those factors can leave your wallet a little happier when it comes to paying for your car insurance too.

Please Note: This is meant only to provide general information about commonly available insurance coverages. Except as expressly noted, this content is not intended to describe any specific coverage offered by MAPFRE Insurance. No coverage is provided, bound or guaranteed by this article. Available coverages, credits and discounts vary from state to state and are subject to eligibility criteria and policy terms/conditions, which will control in the event of conflict between this article and your insurance policy. For information about your policy, please review your individual policy contract and speak with your insurance representative.

MAPFRE Insurance® is a brand and service mark of MAPFRE U.S.A. Corp. and its affiliates, American Commerce Insurance Company^SM (Cal. COA 4928-8); Citation Insurance Company^SM; The Commerce Insurance Company^SM; Commerce West Insurance Company^SM (Cal. COA 1372-2); and MAPFRE Insurance Company^SM (Cal. COA 3039-5). Not all products available in all states.

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