This Is the Average Auto Insurance Payment. Are You Overpaying?

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  • The average monthly auto insurance premium is $196 as per a recent survey.
  • There are steps you can take to lower your costs, like talking to your insurer.

Don't get taken for a ride.

If you're going to own a vehicle, you need auto insurance -- there's no question about it. But car insurance can be expensive. The average monthly auto insurance premium now sits at $196, according to a new doxoINSIGHTS report. That's a lot of money to spend given that it's in addition to other vehicle expenses, like auto loan payments, maintenance, repairs, and fuel -- the cost of which has been through the roof lately.

No matter how much you're currently paying for car insurance, there's a possibility you're actually being overcharged. Or, to put it another way, there's a chance you're eligible for a lower premium rate. To see if that's the case, take these essential steps now.

1. Shop around for a better deal

There are different criteria auto insurers use when determining how much to charge customers. Those criteria include the number of years of driving experience you have, your driving history, and the type of vehicle you buy, along with its cost.

But auto insurance rates can fluctuate a lot from one company to the next -- even if you're filling out the same information across different applications. If you're wondering if you're overpaying for car insurance, perhaps the only real way to know is to see if there's a better offer out there. If you shop around for different rate quotes, you might find an insurer that's willing to offer you a comparable level of coverage at a lower price point.

2. Ask your insurer if there are discounts available to current customers

Some auto insurers offer customers the option to lower their premium rates by taking a defensive driving course. Or, you might manage to snag a discount on your insurance by avoiding moving violations for a certain period of time. Either way, it pays to ask your insurance company what discounts it makes available to customers. That way, you'll see which, if any, are feasible to go after.

3. If you're working remotely, let your insurer know

Many people have shifted over to permanent remote work in the wake of the pandemic. If you're now doing your job from home, as opposed to commuting to an office five days a week, it definitely pays to let your car insurance company know.

The more you drive your vehicle, the more likely you are to get into an accident. But if your vehicle isn't getting a lot of mileage because it's mostly parked in your driveway during the week, then your insurer may be willing to lower its premium rates. Even if you're on a hybrid schedule that has you going into the office one or two days a week, it's still worth seeing if you can get a discount on your insurance due to an overall reduction in mileage.

These days, consumers are dealing with sky-high living costs. It pays to jump on any opportunity you might have to save money. If you think you're paying too much for car insurance, don't hesitate to shop around for a better offer, inquire about discounts, and see if working remotely results in any savings.

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