Am I paying too much for car insurance?

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Auto insurance rates vary widely depending on where you live, your age, driving history, the type of car you drive, and — in some states — your credit score. With so many factors influencing your premium, it’s easy to end up paying more than necessary without realizing it.

Our auto insurance calculator helps you find out how your rate stacks up. By comparing your premium to local averages and factoring in your driving profile, you’ll get a clear view of whether it’s time to switch providers or if your current rate is competitive.

What is the average cost of car insurance in your state?

The following table looks at the average cost of car insurance in each state for a driver with full coverage (including comprehensive and collision coverage), liability-only coverage, and the state minimum rates.

In New Hampshire, car insurance isn’t required if you can cover liability costs out of pocket. The rates shown reflect what you would pay for at least the state’s minimum required insurance.

The least expensive companies for car insurance

Here’s a look at what you can expect to pay, monthly and annually, for minimum and full coverage with eight major insurers. Note that USAA is only available to military members and their families.

Signs you may be overpaying for car insurance

These signs could mean you’re paying more for car insurance than you should:

You haven’t shopped around in over a year

Rates can change significantly between insurers, even if your circumstances stay the same. If it’s been a while since you last compared quotes, you might be missing out on savings.

Your premiums have gone up, even if you haven’t filed a claim 

If your rate increased and your driving history, mileage, or vehicle hasn’t changed, it’s worth asking your insurer why. Sometimes, it’s due to broader pricing changes or regional risk adjustments, but you may be able to find a better rate elsewhere.

You’re not getting discounts you may qualify for

Many drivers miss out on savings simply because they don’t know how to ask. Discounts for safe driving, bundling policies, low mileage, paperless billing, or completing a defensive driving course can add up fast.

You’re carrying coverage that no longer makes sense

If your car is older and not worth much anymore, paying for collision or comprehensive coverage might not make financial sense — the cost could be more than what you’d get back in a claim.

You’ve recently improved your credit, but your rate hasn’t changed

In many states, credit-based insurance scores play a role in determining your rate. If your credit has improved and your insurer hasn’t acknowledged that, you might be eligible for a lower premium.

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When paying more for car insurance makes sense

Even if your car insurance premium is higher than the national or state average, that doesn’t always mean you’re being overcharged. Sometimes, paying more is entirely appropriate based on your situation. For example, if you have full coverage on a newer leased or financed vehicle, your premium will naturally be higher than someone carrying just liability on an older car. 

Similarly, your rate may reflect those increased risks if you’ve had recent traffic violations, an accident on your record, or live in a high-risk ZIP code with lots of accidents or thefts. 

Paying more can also make sense if you’ve opted for additional coverage like gap insurance, roadside assistance, or rental reimbursement. These add-ons cost more but can offer peace of mind and better financial protection if something goes wrong.

How often should you reevaluate your car insurance rate?

It’s a good idea to review your car insurance policy once a year, especially around renewal time. Life changes quickly, and so can your coverage needs. If you’ve moved, switched jobs and drive fewer miles, improved your credit, or added a teen driver to your policy, those changes could all affect your rate. 

Reviewing your policy regularly ensures that you’re not paying for more than you need — and that you’re getting all the discounts you qualify for.

How to lower your auto insurance premium

Lowering your car insurance premium doesn’t always mean reducing your coverage. In many cases, it just means being more strategic about your choices. 

“Many companies offer discounts. One example is a multi-car discount, and another is if you bundle your home and auto insurance with the same provider,” says Lois She-Tom, FCAS, director and P&C actuary at Country Financial. “You may also earn a discount for using an auto telematics app, taking a defensive driving class, keeping a good driving record, or having a specific occupation like a teacher or first responder.” 

Here are five ways to cut costs without compromising protection:

Raise your deductible

If you’re comfortable covering a higher out-of-pocket amount in the event of a claim, choosing a larger deductible on your collision or comprehensive coverage can significantly reduce your premium. Just make sure you have enough set aside to cover that deductible if needed.

Bundle your policies 

Most insurers offer discounts when you purchase multiple policies, such as auto, home, or renters insurance. Bundling not only saves money but also simplifies managing your coverage.

Use a usage-based program or app

Some insurers offer apps or devices that track your driving habits. If you drive safely and don’t log many miles, these programs can reward you with lower rates based on your actual behavior rather than averages.

Review and remove unnecessary coverage 

If you’re paying for add-ons like rental car coverage or roadside assistance through your insurer — but already have them through a credit card or auto club — you could be doubling up. It’s worth reviewing what you need to avoid paying for the same thing twice.

Ask for discounts, including for safe driving

“Maintaining a clean driving record is also critical in keeping car insurance premiums as low as possible,” says Nick Ramirez, agency owner at Goosehead Insurance. “Avoiding tickets and accidents is the most direct way to keep your premiums down, as these are significant factors in rate calculations. Some carriers also offer programs that reward good driving behavior with lower rates.”

You might be surprised how many discounts are available just by asking. Whether it’s for being a good student, working in a specific profession, driving a car with safety features, or setting up automatic payments, every little bit helps.

Car insurance isn’t a one-size-fits-all product. The key is ensuring that what you’re paying aligns with your needs, risk profile, and the current market. Regularly reviewing your policy, shopping around, and knowing what factors affect your rate can help you stay in control of your premiums. If you’re unsure where you stand, our calculator can provide a quick, personalized comparison — and may help you uncover savings you didn’t know existed.

When switching car insurance companies makes sense

Switching car insurance providers isn’t something you’ll need to do often, but it can be the right move when your current policy no longer fits your budget or coverage needs. For example, if your premium goes up even though your driving record hasn’t changed, or if you’ve moved to a new ZIP code, it’s smart to compare quotes. The same applies if you’re adding or removing drivers, or if you want perks like accident forgiveness or better claims service.

Even if nothing major has changed, shopping around once a year is a good habit—insurers adjust their rates regularly, and you may find a better deal. Just be sure your new policy is active before canceling the old one to avoid a lapse in coverage.

Zack Sigel

 

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Zack Sigel is a writer and editor based in New York City. He has been managing editor at Policygenius and M1 Finance, where he led teams specialized in writing about business and finance, and he has also written about music and culture for Hyperallergic, VH1, Complex, and the Los Angeles Review of Books. Zack has a bachelor's degree from New York University, Tisch School of the Arts.