My Car Insurance Is Too High

Your car insurance could be too high because the car insurance company sees you as a risk due to either driving record, credit history, age, and even where you live. Always compare rates and ask about discounts.

Free Car Insurance Comparison

 Secured with SHA-256 Encryption

Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

Full Bio →

Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 25, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • Research can reveal if your car insurance premium is too high
  • Comparative rating systems can help shop for a lower premium
  • An insurance agent can also assist as you shop the market
  • You can change car insurance carriers at any time, even mid-term

Do you have auto insurance that has a premium that is simply too high? One thing that all consumers can agree on is that they want to be sure they are getting the best deal possible with their insurance.

When you are in the market for a car insurance policy, or maybe you already have one, how can you be sure that you’re being charged a fair rate?

How do you know that the premium that you are being charged is fair and has real value?

As a consumer, what you always need to remember is that when it comes to insurance, you are in control and you have the power to find the most value in the market.

The car insurance industry is one that is beyond crowded. There are many national insurance carriers out there all trying to compete for market share. There are also plenty of niche insurance carriers also trying to carve out their tiny piece of the space.

As a consumer, this puts you in a great position to shop the market and ensure that when you sign on with a policy, you are getting the most value that you can. If you have auto insurance that is too high, it is time to take action.

Enter your zip code into our free rate comparison tool above. You might be able to save hundreds of dollars a year by switching car insurance providers.

Understanding Insurance Rates

To figure out if you have a car insurance premium that is too high initially, you have to understand what is the driving force behind the dollars you are being charged.

Insurance premiums are calculated in a very formulaic way.

Insurance providers have rates that they file with the individual states that dictate what they will charge for a policy. Adjustments to those rates are going to come from whether or not you have had a history of car accidents, a pristine driving record, etc.

You may also get adjustments to your car insurance premium if you meet one of their specified criteria. For example, if you only drive 8,000 miles or less each year, you are usually going to be able to get a discount for that.

If you drive more than that, the premium is likely to be higher.

If you are under the age of 25 and you pose an increased risk, your rates are also going to go up and thus; your premium will work as well. When you understand how your premium is calculated, figuring out if it is too high and how you can shop to get it lower becomes easier.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

What causes car insurance rates to increase?

As we talked about above, you are going to find that your car insurance premium can increase for a variety of reasons.

  • your driving history
  • your age
  • the type of car that you drive
  • where you live

The various factors that cause premiums to increase all need to be made aware of. You need to know what is driving the dollars you are being paid.

Are all insurance companies the same?

It is pivotal to note that all insurance carriers are not going to be the same. When it comes to a car insurance carrier, the one thing that has to be constant is what they are charging each customer across the company.

If you have two drivers with the same risk profile and car and go to insurance company “A,” you will get charged the same premium.

Insurance carriers are not allowed to charge consumers differently across their book of business because the rates are already filed and must be followed.

If those same two people in the above example went to different insurance carriers, they are going to come back with premiums that vary.

They are, more likely than not, going to end up in a situation where they are unaligned on what they are being charged.

What is the driving force behind this? Every insurance carrier is going to be developing their rates based on their risk assessment.

The rates that insurers produce are based on actuarial work, historical data, loss history that they expect to see repeated in the future. The loss ratios they hope to obtain are also going to be driving forces behind what they charge premium dollar wise.

Every single insurance carrier will be consistent across their company, but when you compare one insurer to the next, variances will indeed exist.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

How can you lower your car insurance?

If you are a consumer that has a high car insurance premium, how can you go about getting a lower premium? It is all about making use of the comparative rating systems that are available online.

You would be amazed at the amount of information you are going to be able to acquire when you shop the internet for car insurance. Just hop onto Google and search for a term such as “lower my car insurance premium” and you will find many results.

The risk that you present is going to be perceived differently by the various insurers that are out there in the market.

The way to get a lower premium is to do your homework and see where you, as a risk, is going to be seen as the least dangerous to an insurance carrier. Those are the carriers that are going to offer you the following:

  • lower rates
  • higher discounts
  • decreased premium overall

One other option that you do have is to hire an agent to help you. An insurance agent is someone that is going to work on your behalf to shop the market for you.

They are going to seek out the various carriers and ask what they can offer for coverage in exchange for a premium. They can do the leg work for you in exchange for a commission they get, usually a cut of your premium.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Focus on Coverage

You also do not want to lose sight of the coverage that you are being offered. You could get a dirt cheap insurance premium, but it may be because the coverage that you are being offered is half of what you currently have.

It is one thing to lower your insurance premium, but you also want to make sure that you are going to have adequate coverage when you are out on the road. Accidents can always happen, even when you least expect it. Insurance is there to indemnify you, make you whole again.

Act Today, Not Tomorrow

You are not trapped to the current car insurance policy that you have. What many consumers think is that they are stuck with the policy they have now until it has fully expired. That could not be farther from the truth.

With virtually all car insurance carriers, you have the ability to cancel your car insurance at any time.

You do not have to wait until you get to the expiration date of your current policy to make a move, to adjust things for a lower premium.

Start shopping for a new car insurance policy today. Once you find that ideal policy, it is then that you can set your current policy up so that it goes into effect on the same day that your current policy is canceled out.

The time to act is now. Comparative rating systems are out there to help you get the most value possible from your car insurance policy. It is up to you to take advantage of the technology that exists as well as the industry that is extremely competitive.

Insurance carriers want your business, and they are going to do all that they can to acquire it. As a consumer, finding that perfect match starts and ends by putting the work in.

If you want to lower your car insurance premium, you certainly can do it! It’s as easy as entering your zip code into our free rate comparison tool below!

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Average Monthly Car Insurance Rates by State