Stop Overpaying for Auto Insurance

Are you overpaying for car insurance? The best way to stop overpaying for car insurance is to understand what factors are affecting your rates and what car insurance discounts you qualify for. It's important to compare car insurance quotes online every six months to make sure you aren't overpaying for car insurance in your area. Enter your ZIP code below to compare quotes now.

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UPDATED: Jun 2, 2022

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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.

Written By: Laura BerryReviewed By: Joel OhmanUPDATED: Jun 2, 2022Fact Checked

Here's what you need to know...

  • There are some steps to take to make sure you’re not overpaying. These steps begin with understanding what factors affect rates
  • Learn about insurance companies in your state through your state insurance commission
  • Car insurance laws vary from state to state, and that will impact your rates
  • Always look for discounts to save on your car insurance premiums

One clear way to avoid overpaying for car insurance is to research car insurance rates online. It’s convenient and fast, and if you do it right, you could save hundreds of dollars on your auto insurance policy rates.

Type in your ZIP code to compare car insurance rates now!

  1. The first thing to do is basic research on how car insurance policies actually work and what factors affect rates. It’s also helpful to know the basic minimum for your state and the severity of the penalty if you’re caught driving without insurance, and quite sobering facts those are, we assure you.
  2. The second thing to do is to figure out what discounts are available and how best to use them.
  3. The third thing to do is to go online, with the previous information still in your head and compare car insurance rates between different companies. There are more than several hundred insurance companies online. Start with at least three auto insurance companies online when you’re comparing quotes.

What’s a good research guide for learning about car insurance policies?


The official watchdogs for the auto insurance industry, and all insurance companies, are the statewide insurance commissions.

While they all offer good advice on saving money on your auto insurance rates, by far the most comprehensive advice you’ll get on auto policy comes from the state of Colorado.

They published a whole a booklet of advice that you can save as a PDF. That booklet is called the “Consumer’s Guide to Auto Insurance.”

This book is a great starting point. It does a very good job of defining insurance terms (like liability and underwriting), and going over the factors that affect your insurance rates.

It also discusses various discounts that you might be eligible for as a consumer.

The guide points out that it even prints out insurance rates online so that you can compare for yourself.

Read the guide carefully because the reality is that, to avoid overpayment on car insurance policies, you need to understand the basics of auto insurance.

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Is the insurance standard the same for every state?

Keep in mind insurance minimums vary from state to state just as penalties do. Almost every state has to meet insurance minimums. You should know the minimums because that affects the price of your auto insurance policy.

For example, if you buy according to North Carolina’s minimum, when you, in fact, live in California, you’ll be paying too much for your car insurance policy (recommendations from some injury attorneys notwithstanding).

This is because North Carolina’s minimum insurance is 30/60/25 (the first and second numbers refer to bodily injury liability limits and the third number refers to property damage liability) while California’s state minimum is 15/30/5.

Will discounts lower my car insurance rates?


The biggest and best reason to research rates online is to figure out the many discounts for which you might be eligible.

These are the factors, more than anything else, that will lower your auto insurance premium substantially, up to $1000 per year if you do it right.

The most readable version of how to save money comes from California Department of Insurance Commissioner Dave Jones.

To paraphrase, we’re all aware that the economy these days is not a great one and most everybody’s budget is tight. You should always make sure that the car insurance policy you research and purchase fits your needs and your budget.

The commissioner offers a number of remedies for not overpaying on your car insurance rates.

These remedies include:

  • Passing on comprehensive insurance for a used car
  • Using online comparison tools to save money on your policy
  • Having a higher deductible that lowers your premium. Make sure that you can afford the out-of-pocket costs, however.

There are also many discounts you can ask about for your policy. For instance, you could get a discount if you:

  • drive fewer miles (to work and back only)
  • are married
  • are older than 25

There are discounts, too, if you insure more than one vehicle or purchase more than one kind of insurance policy (car plus home or rental insurance for example) with the same company.

Some insurers will give you a discount if you take a defensive driving course.

So, bottom line, learn as much as you can about auto insurance before purchasing your car insurance policy.

If you do this, then you can save yourself a substantial amount of money and certainly avoid overpayment on your policy.

Start your research now by typing your ZIP code into the FREE box and learning about different car insurance quotes!

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.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

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...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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