Most Drivers Overpay for Car Insurance -- Here's the Simple Habit That Can Fix It
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I thought I had my household finances dialed in -- savings accounts optimized, cards chosen for rewards, even gas stations mapped by price. But one bill I never second-guessed? Car insurance.
It wasn't until I moved to a new county this year that I finally took a closer look, and I found a policy that cost hundreds less for the exact same coverage.
That's when it hit me: not shopping around for car insurance is a huge opportunity cost -- especially for families trying to stretch every dollar.
Why loyalty doesn't always pay
Car insurance rates don't just rise because of accidents or inflation -- they also rise because of habits.
If you've been with the same company for years, it may assume you won't shop around. That's called price optimization, and while it sounds shady, it's legal in many states.
Translation: the longer you stay loyal, the more likely you are to overpay. Not because your driving changed, but because your insurer knows you probably won't notice.
Most drivers never shop around -- and that's the real problem
Our Motley Fool Money car insurance research found that nearly 3 out of 4 drivers don't compare car insurance quotes each year.
That means most of us just auto-renew, even when rates quietly creep higher. It's like paying more for the same groceries every month and never noticing.
I get it. Life gets busy. Between work, kids, and everything else, it's easy to let something like car insurance sit on autopilot. But those small oversights add up fast.
That's why I just added car insurance to my list of annual household review items -- right alongside checking our savings rates and card perks.
The easy way to compare rates
I know what you're thinking: Who has time to fill out five different quote forms? That's why I like comparison tools that do the legwork for you.
Here's how they work:
- You answer a few basic questions about your car and driving history
- The system matches you with top providers in your area
- You compare quotes side by side and pick what works
That's it. Just real quotes you can review in minutes. Start using the free tool today to compare rates from the top insurance companies.
My annual insurance rule
Now I treat insurance the same way I treat savings rates: a quick check-in once a year to be sure I'm getting the best deal. Even when I stay with the same carrier, that peace of mind is worth it.
If it's been a while since you've compared, take a few minutes today. You might find your next renewal costs less just because you finally looked.
Check out today's top car insurance companies to compare the best rates.
Our Research Expert
Brooklyn Sprunger is a full-time Content Manager and Personal Finance Writer at Motley Fool Money, where she oversees product reviews and ratings while also writing about credit cards, bank accounts, investing, auto insurance, and other personal finance topics. She has worked in financial content since 2018, including more than four years at The Motley Fool. When she’s not writing or editing, Brooklyn is likely hiking and watching the Tennessee Vols.