Three Signs You Are Paying Too Much For Auto Insurance

There are signs you're paying too much for auto insurance, and you should act quickly to get better rates if you've seen them. Shop around, get discounts, and more so you can stop paying so much and start saving money. Learn more here about how to save if you pay too much for auto insurance.

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Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for 4autoinsurancequote.com for over a year and enjoys creating content that offers expert advice on car insurance topics.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs...

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Reviewed byLeslie Kasperowicz
Former Farmers Insurance CSRhttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/4autoins-live/6ea5d860-leslie-kasperowicz.jpg

UPDATED: Sep 27, 2020

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What You Should Know

  • You may be paying too much for your auto insurance if you haven’t updated your policy in six months, haven’t shopped around, or haven’t checked for hidden fees in a while.
  • Your auto insurance rates are determined by a number of factors, and these are weighed differently by each auto insurance company.
  • The best way to save on your auto insurance is to shop around.

Am I paying too much for auto insurance? Even with all the innovations in the automobile insurance industry over the last decade, people are still somehow finding ways to pay too much for their auto insurance.

So, do you pay too much for car insurance coverage? If the three signs below sound familiar, chances are you’re losing money unnecessarily. Read our three signs you’re paying too much for auto insurance below and then check out our recommendations for ways you can start saving on your auto insurance rates.

Are you paying too much for your car insurance? You should shop around. Enter your ZIP code to get FREE quotes from the best auto insurance companies.

#1 – Update Your Auto Insurance Policy Every Six Months

Am I paying too much for my car insurance? If you haven’t updated your policy in six months, you’re probably paying too much.

If you haven’t checked out the most recent coverage rates and features, there’s a good chance you’re overpaying for your auto insurance. Before renewing a policy, you should always check and see if there are any companies offering more competitive rates. Always being up-to-date on the current prices and deals available is very important if you want to get the best rates possible.

That’s how to know if you’re paying too much for car insurance.

And what’s the best way to look for these offers and deals? A great place to start is right here at 4AutoInsuranceQuote.com. There’s a place to enter your ZIP code at the top of this page.

After clicking the “get quotes” button, you’ll get back quotes from dozens of the most reputable auto insurance providers. You can then compare these quotes with your current rates to see how well your current policy stacks up in terms of coverage and price.

Factors That Determine Your Auto Insurance Rates

You don’t necessarily need to switch insurers every six months, but at the very least, you should be looking for other offers and deals.

It’s fair to check to see if you even need the level of coverage that you’re currently paying for. Do you need a high level of coverage? The table below shows how your rates can change based on the level of coverage that you have.

Average Annual Auto Insurance Rates by Coverage Level
CompaniesAverage Annual Rates with Low CoverageAverage Annual Rates with Medium CoverageAverage Annual Rates with High Coverage
USAA$2,404.11$2,539.87$2,667.92
Geico$3,001.91$3,213.97$3,429.14
State Farm$3,055.40$3,269.80$3,454.80
American Family$3,368.49$3,544.37$3,416.40
Nationwide$3,394.83$3,449.80$3,505.37
Progressive$3,737.13$4,018.46$4,350.96
Farmers$3,922.47$4,166.22$4,494.13
Travelers$4,223.63$4,462.02$4,619.07
Allstate$4,628.03$4,896.81$5,139.02
Liberty Mutual$5,805.75$6,058.57$6,356.04
Get Your Rates Quote Now

Auto insurance rates are factored differently by each insurer. This video goes over some of the major factors for your rates.

If you have any blemishes on your driving record, less than perfect credit, a long commute, or just live in a high crime area, your rates will go up. But auto insurance companies factor these things differently.

Your driving record is the biggest one. You can see in the table below how just one at-fault accident or DUI can affect how much you have to pay.

Average Annual Auto Insurance Rates By Driving Record
CompaniesAverage Annual Rates with a Clean RecordAverage Annual Rates with One accidentAverage Annual Rates with One DUIAverage Annual Rates with One Speeding Violation
USAA$1,933.68$2,516.24$3,506.03$2,193.25
Geico$2,145.96$3,192.77$4,875.87$2,645.43
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Get Your Rates Quote Now

With these major insurers, you’ll pay anywhere from 17 to 127 percent more with one DUI. You can see how important your record is, but this is also a good example of how different auto insurance companies will evaluate your risk profile differently.

Enter your zip code below to view companies that have cheap auto insurance rates.

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#2 – Check For Hidden Fees and Conditions on Your Auto Insurance

If you haven’t checked for hidden fees, you’re probably paying too much. All relationships, whether professional or personal, rely heavily on trust between the two parties involved. When signing on to a new policy, it’s important that you fully understand the conditions of your coverage.  A good place to start is our article on the fine print of an auto insurance policy.

If you keep seeing additional charges on your bill — things like convenience charges, claim fees, etc. — you’re probably paying more than you need to. These fees are excessive and can build up fast. If you call and complain and your insurer still refuses to drop these fees, it may be time you take your business elsewhere.

#3 – Check Auto Insurance Company Customer Satisfaction Ratings

If you haven’t checked your auto insurer’s customer satisfaction ratings, you’re probably paying too much.

No matter how great of a deal you think you got on your auto insurance, if the service isn’t absolutely phenomenal, you’re paying too much for your coverage. We rely on our auto insurance companies and their employees at some of our most desperate times, so if the service isn’t great, things can get frustrating.

I can tell you from personal experience that when insurers and claims officers make you jump through hoops to get a claim settled, it can be quite infuriating. Although auto coverage is almost always required by state law, the real reason we get insurance is for peace of mind and convenience.

When you have the misfortune of working with a company that doesn’t offer either, you’ll agree that any rate is too high to pay for such low-quality service. Do your research on the different auto insurance companies out there. Companies like J.D. Power and A.M. Best can help you determine how well a company is doing on customer service or financial strength.

Read customer auto insurance reviews and complaints. Customer service may be the most important thing when it comes to insurance coverage, so it’s best to make sure you’re being treated perfectly.

What You Can Save on Your Auto Insurance

If any of these three signs sound familiar to your specific situation, you should absolutely see what other insurers have to offer. You may be surprised by just how much money you can save.

You can see in the table below the availability of some of the most common auto insurance discounts.

Commonly Available Auto Insurance Discounts by Company
CompaniesClaim Free DiscountGood Student DiscountHomeowner DiscountLow Mileage DiscountMultiple Vehicles DiscountSafe Driver Discount
21st Centuryxxxxx
AAAxxxxxx
Allstatexxxx
American Familyxxxxx
Ameriprisexxxx
Amicaxxxxxx
Country Financialxxxxx
Esurancexxxxxx
Farmersxxxxxx
Geicoxxxxxx
Liberty Mutualxxxxx
MetLifexxxxxx
Nationwidexxxxxx
Progressivexxxxxx
Safe Autoxxxxx
Safecoxxxxxx
State Farmxxxxxx
The Generalxxxxxx
The Hanoverxxxxx
The Hartfordxxxxxx
Travelersxxxxxx
USAAxxxxx
Get Your Rates Quote Now

To get started, why not try our quote comparison tool to get an idea of what you could be paying?

How much is too much for car insurance? The truth is that you’re probably paying more than you should. Shop around. Enter your ZIP code to get FREE quotes from multiple insurers.

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