All too often, car insurance becomes one of those expenses that you pay but don't really think about. That can often lead to you unknowingly paying more than you really needed to pay for the insurance coverage that you need. When it comes to saving money on your car insurance, it's important that you understand why you're paying as much as you are. Here's a look at some of the basics you need to know about your car insurance premiums.

The Less You Drive, The Lower Your Rate

Most car insurance policies are rated based on commuter use of the vehicle. That means your policy is rated on the assumption that you're driving back and forth to work every day. Insurance company risk assessments declare that the more miles you drive every day, the greater your risk of an accident will be. As a result, your premiums will be higher than someone who is retired and only uses their vehicle for pleasure travel. Make sure that your car is rated properly according to how you use it so that you can be sure that you're getting the best possible premium.

Where You Live Matters

One of the things that you will notice when you call for a car insurance quote is that you're always asked for the zip code where you keep your car. This is an important factor in your insurance premiums because it directly affects the level of risk associated with theft, vandalism, animal accidents, and more. Insurance companies rate every zip code based on crime statistics, accident history, and similar information. 

Your Driving History Is A Factor

Another significant factor in the rate of your insurance premiums is your driving history. Any accidents, speeding tickets, or other violations on your driving record can increase your premiums because they increase your level of risk as a policyholder.

If you are concerned about how your driving history might be affecting your insurance premiums, consider reaching out to a company that eliminates the oldest violation from your underwriting record. This may help reduce your premium.

You can also work with an insurance company that bases your premiums on your actual driving activities. You'll be provided with a small device that you plug into your car's onboard computer. Every time you drive, that device will record your speed, your vehicle movements, and your general driving habits. The safer you drive, the lower your premiums will be.

Talk with an auto insurance company near you today for more information and to find the coverage that's right for you.