in the U.S. is $1,526 per year for state minimum coverage and $2,264 per year for a full coverage policy. But auto insurance rates are individualized, so the only way to know if you’re paying too much for car insurance is to compare quotes from multiple companies.

Are you paying too much for car insurance?

The average car insurance costs in your state can give you a general idea of what people pay—but remember that individual factors heavily impact your rates, so you could pay more or less than the average.

State	Minimum coverage	Full coverage
Alabama	$64	$149
Arizona	$61	$157
Arkansas	$66	$161
California	$66	$200
Colorado	$60	$181
Connecticut	$98	$183
Delaware	$77	$185
District of Columbia	$83	$164
Florida	$174	$312
Georgia	$104	$213
Idaho	$44	$114
Illinois	$42	$102
Indiana	$63	$138
Iowa	$56	$114
Kansas	$55	$135
Kentucky	$109	$199
Louisiana	$105	$260
Maine	$60	$129
Maryland	$91	$192
Massachusetts	$41	$75
Michigan	$118	$197
Minnesota	$67	$133
Mississippi	$65	$162
Missouri	$59	$147
Montana	$45	$124
Nebraska	$43	$109
Nevada	$73	$152
New Hampshire	$52	$121
New Jersey	$43	$82
New Mexico	$93	$181
New York	$54	$159
North Carolina	$63	$150
North Dakota	$122	$211
Ohio	$49	$106
Oklahoma	$60	$137
Oregon	$70	$149
Pennsylvania	$53	$133
Rhode Island	$67	$152
South Carolina	$113	$218
South Dakota	$53	$124
Tennessee	$59	$155
Texas	$85	$198
Utah	$67	$132
Vermont	$61	$130
Virginia	$36	$80
Washington	$65	$145
West Virginia	$42	$103
Wisconsin	$59	$134
Wyoming	$29	$89
Average coverage cost	$77	$165

Paying more than the average doesn’t necessarily mean you’re paying too much for your car insurance coverage, though. Consider the following:

Have you been with the same insurance company for years without comparing new rates?

Have you seen your rate increase steadily—even without an accident or citation?

Are you carrying insurance add-ons that you never use, like rental car reimbursement?

Are you ineligible for discounts from your current provider?

Here’s the real deal: Shopping around and comparing insurance quotes from multiple car insurance companies is the only way to know whether you’re overpaying.

The Jerry app can help you confirm whether there’s a lower rate available to you. From a single profile, Jerry can browse quotes that meet your coverage requirements from 55+ insurance providers. You’ll be able to see a curated collection of the best rates—and then compare them to what you’re currently paying.

If you want to switch, you can do it right in the app. Jerry might even be able to help you start the cancelation process with your previous insurer.

If you want to switch, you can do it right in the app. Jerry might even be able to help you start the cancelation process with your previous insurer.

Paying too much? Here’s how you can save

If you find a cheaper rate when you’re comparing quotes, you can switch providers—but if you want to lower your rate a little more, here are some strategies you can use.

Learn more:

10 essential car insurance hacks to lower your rate

Revisit your coverage and deductibles

If you’re carrying coverage that you don’t need (like

gap insurance

after you’ve paid off your car loan or

collision insurance

on a car that’s only worth a couple of thousand dollars), removing it from your auto insurance policy will bring down your rates.

Moving to higher deductible amounts will also lower your annual premium. But make sure you maintain deductibles that you can afford to pay if you need to file a claim.

Remember: Don’t sacrifice essential coverage to save a few dollars. It’s always a good idea to carry as much
liability insurance
as you can afford—and comprehensive coverage and collision coverage are good investments for most drivers.

Learn more:

How to choose your car insurance deductible

Ask about discounts

Insurance discounts

are an easy way to shave a percentage off your auto insurance premium. While many discounts are automatically applied to your policy, you might have to ask if you want a good student discount or to enroll in autopay or paperless billing.

If you’re not already taking advantage of bundling discounts and

telematics programs

, these are well worth a look as they can save you 20–25% on your insurance costs.

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Reshop your car insurance policy often

About 70% of drivers don’t reshop for insurance after they secure a policy. Even if you’re happy with the rate you’re paying with your current insurer, comparing quotes from other companies will help ensure that you’re getting the best rate.

You don’t have to wait for your renewal to shop around—you can switch providers at any time!

If you’re using Jerry, you can turn on reshopping alerts to receive notifications when a lower price might be available for you.

Work on your credit rating

In 47 states, auto insurance companies can use your

credit score to determine rates

. It’s only illegal to do so in California, Hawaii, and Massachusetts.

Good credit is typically associated with fewer insurance claims. And while building better credit isn’t a quick fix, it can help you achieve lower insurance rates over the long term.

Providers don’t use standard credit scores. They use similar methods to FICO or Experian credit scoring, plug it into their own algorithm, and create their own credit score for you. So it might be a few points different but will trend in a similar fashion to your consumer credit score.

Maintain a clean driving record

Your driving history is one of the key factors in your insurance rate. Drivers with no violations or driver’s license points enjoy some of the lowest rates—so sticking to the speed limit and following the rules of the road will pay off.

What goes into your auto insurance rate?

Insurance providers take into account a multitude of factors when setting your car insurance premium, including:

Changes to insurance coverage

Changes in your credit history

Lost (or added) discounts

A recent move to a higher or lower-risk area

Traffic violations

Past claims

Your age and gender

Insurance costs are also rising across the country due to inflation, high healthcare and vehicle costs, and increasing accident rates. You might not be overpaying for coverage, but if you feel like your insurance rate has increased over the past few years, you’re not imagining it—it probably has.

Learn more:

Why car insurance rates are going up in 2023

FAQs

How do I know if I am paying too much for insurance?

The only way to know if you’re overpaying for car insurance is to compare rates from other companies. If you find a lower rate elsewhere, you can switch anytime.

Can I lower my car insurance?

Shopping around is the best way to find a lower car insurance rate. You can also adjust your coverage levels and deductibles, ask about car insurance discounts, and work to maintain a clean driving record.

Is it worth it to pay more for car insurance?

You’re only required to purchase state minimum insurance coverage, but increasing your liability limits and adding full coverage options are almost always good. Higher liability limits protect you from potential lawsuits and collision and comprehensive coverage pay for damage to your vehicle if you’re involved in an accident.

Do high-risk drivers pay more for insurance?

Yes, high-risk drivers pay more for car insurance. If you have speeding tickets, DUIs, or other violations on your driving record, insurance companies will see you as a higher risk to insure and charge you a higher rate.

Does car insurance ever get lower?

You might notice your car insurance getting lower when you turn 25 or if violations on your record are no longer affecting your insurance premium. In general, though, economic factors tend to cause insurance rates to steadily increase across the country.

Why are auto rates so high in 2023?

Inflation, rising vehicle repair costs, supply chain shortages, and higher car accident rates all contribute to higher insurance rates (and higher claim payouts) in 2023.

Which auto insurance companies offer the lowest rates?

No one insurer offers the lowest rates for every driver, though Progressive and GEICO are often noted for offering great rates. The best way to find a low rate is to shop around and compare auto insurance quotes from at least 3–5 companies.

Is car insurance more for a new car?

Car insurance tends to cost more for a new car than a used one since new vehicles are more expensive to repair or replace.

Does my age affect my car insurance rate?

Your age will impact your car insurance rate unless you live in CA, MA,or HI. In North Carolina age is only used for discounts for those 55+. Young drivers under 25 pay some of the highest insurance rates, while drivers 35-55 pay lower premiums. Rates tend to increase again after age 75 due to higher risk factors.

Does my zip code affect car insurance rates?

Your zip code will impact your car insurance rate. If you live in an area with a high population density, lots of traffic, or a high risk of theft, you’ll pay higher premiums than if you live in a rural area with a low accident risk.