7 Warning Signs You're Paying Too Much for Car Insurance

Car insurance can be expensive, but you may be paying even more than you need to.

When was the last time you considered cost-saving changes to your policy, or tried to find more affordable auto insurance coverage? If it’s been more than 90 days then your policy could be outdated, and should check for better options and savings.

When you start looking for savings on your new rate you should look for any of these warning signs that you might be paying too much, so you can get better discounts.

1. You haven't shopped around for a new policy lately

In a busy world, comparing insurance quotes is probably the last thing on your mind. It’s easier to simply renew your policy automatically.

But that can be a big mistake. Getting quotes from multiple insurers is one of the best — and easiest — ways to quickly cut your insurance costs. There is a good chance another insurer offers the coverage you need at a better price than what you pay now. FinanceBuzz’s auto insurance marketplace now offers a fast and free way to compare quotes from multiple insurers. You’ll get carriers competing for your business in a matter of minutes.

2. You haven't updated your current insurer about life changes

Things can change fast in life. Perhaps you are working from home now, and drive less than you did when commuting to an office. Or maybe your teen has grown up and no longer needs to remain on your insurance policy.

If so, let the insurer know about these changes. If you drive less than 50 miles per day, recently bought a home or you haven’t had an accident or ticket in three years, should all be things to let your carrier know or reach out to a new one so you could save you money.

3. You haven't checked on potential discounts

There are many different ways to qualify for discounts your insurance company offers. Insurance companies may knock down the cost of your premiums if you insure multiple cars on the same policy, remain with the insurer over a long period, or have a child who earns good grades, for example. Don’t be afraid to shop and ask for potential discounts or ways to lower your rate.

4. You're not enrolled in a tracking program

Insurance companies often offer programs that give you the chance to save money if you agree to let the insurer track your driving habits.

For example, you might earn a discount for driving safely, or for driving fewer miles than the average driver. If you are comfortable having your insurer track your driving, ask about these programs and find out how much you can save.

If your insurance company doesn’t offer a discount program, then it might make sense to speak to other carriers about switching your policy and enrolling to find better savings.

5. You're not enrolled in money-saving billing options

Signing up for your insurer’s auto-pay system can save you cash. When you agree to do this, your policy will automatically renew, with the payment coming straight out of your bank account or going to your credit card. Insurers often offer a discount to policyholders who agree to use auto-pay. Some insurers also might offer a discount to those who sign up for paperless billing.

6. Your deductible is too low

Many insurance companies will charge you less money in premiums if you agree to raise your deductible. For example, raising your deductible from $500 to $1,000 could net you a significant discount. Most people have no idea what their deductibles are.

Before choosing this option, make sure you would have enough cash to pay the deductible in the event of a claim. If you cannot afford the higher deductible, it does not make sense to agree to it, but if you’re a safe driver who hasn’t had any accidents in years, then it might make sense to change it or find a cheaper rate.

7. You are not bundling coverage

A great way to save money is to bundle your auto insurance with other coverage. Perhaps you have a homeowners or renters insurance policy with a different company. You also might have policies with another insurance provider that cover other vehicles like a motorcycle or boat.

Insuring all these things with one company might get you a discount. Get multiple quotes to see how much you could save by bundling.

Bottom line

Car insurance can be a big expense for drivers, but there are ways to save money. Switching auto insurance providers can be one of the fastest and easiest ways to see big savings and you can switch in only a matter of minutes. You could save up to $600 without spending a lot of time and using the tips above.

FinanceBuzz can help you compare dozens of providers in under five minutes and have helped millions of customers find better rates.