The Average Driver Overpays by $672/Year on Auto Insurance

What the Data Actually Shows About Auto Insurance Pricing

There's a number that the insurance industry doesn't love talking about: $672. That's the average amount American drivers overpay on their auto insurance every year, according to multiple consumer studies.

Not because they chose bad coverage, but because they simply never compared what else was available.

Here's how it happens. You sign up with a carrier, maybe when you first got your license or when you bought your last car. The rate seems fine. You set up autopay and move on with your life. Meanwhile, other carriers are adjusting their pricing models, new discounts roll out, and your own risk profile changes — maybe you moved, improved your credit, or just got older.

But your current carrier has no incentive to lower your rate voluntarily. Why would they? You're already paying.

Your Credit Score Matters More Than You Think

Most drivers assume their premium is based primarily on their driving record. That's part of it, but it's far from the whole picture.

Your credit-based insurance score is one of the biggest factors in most states — often more impactful than your actual driving history. This isn't your regular credit score. It's a separate calculation that predicts how likely you are to file a claim based on your credit behavior.

Carriers argue it's statistically valid. Consumer advocates argue it's discriminatory. Either way, it's legal in most states and it's affecting your rate right now. See what rates are available in your area →

Your ZIP Code Can Swing Your Rate by 20%+

Carriers price based on the claims history of your specific area, which means moving even a few miles can change your rate significantly. Urban areas with higher theft and accident rates cost more — but the pricing isn't always intuitive. Some suburban ZIP codes are surprisingly expensive due to highway proximity or weather patterns.

Because every carrier weighs these factors differently, the cheapest option for one driver can be the most expensive for another. Two people in the same ZIP code with the same car can get wildly different quotes from the same carrier.

The Other Factors Working Against You

Beyond credit and location, carriers also weigh your vehicle's make and model (repair costs and theft rates vary dramatically), your annual mileage, your coverage limits, deductible choices, whether you own your home, your marital status, and in many states, your occupation and education level.

The key insight: because every carrier weighs these factors differently, the cheapest option for one driver can be the most expensive for another. That's why comparing is so valuable — and why staying with one carrier without checking is so costly. Compare rates from top carriers now →