Many Americans losing car insurance savings by not shopping around, study shows
Americans think they are likely paying too much for car insurance, a new survey shows. Here's what they can do to lower their rates. (iStock)
Many Americans could be missing out on car insurance savings, with more than 60% of survey respondents saying they never or rarely shop for better rates, according to a new study from Expertise.com, a data and research company aiming to connect consumers to working professionals.
While 49% of all survey respondents said they thought their auto insurance rate was too high, 40% of respondents said they only shopped for better rates every few years and 22% said they never shop for better rates.
And these numbers grow even more among younger generations, according to the study. About 57% of Millennials never shop for better car insurance rates while the same is true for 76% of Gen Z, according to the study.
If you're interested in seeing how much you could save on car insurance, visit Credible to fill out your information once and compare multiple car insurance quotes to get the cheapest rates.
HOW TO CHANGE YOUR CAR INSURANCE POLICY
How much are Americans paying for auto insurance?
Overall, drivers pay an average of $215 per month for auto insurance, but this varies significantly by age group, according to the study. Here are the average rates for each generation:
- Gen Z: $270
- Millennials: $228
- Gen X: $189
- Baby Boomers: $135
"Surprisingly, the generation with the smallest proportion of respondents saying they pay too much is Gen Z (39%)," the survey states. "Perhaps this group understands that insurance costs more for young adults with less driving experience or maybe they haven’t experienced the inflation of car insurance rates like older generations have, giving them less of a frame of reference for what is ‘expensive.’"
But while younger generations can expect to pay more, they should still shop for cheaper car insurance regularly to ensure they continue to get the best rates available. Through an online marketplace like Credible, drivers can find cheap car insurance that best fits their needs by comparing multiple quotes at once.
THIS IS THE BEST WAY TO LOWER YOUR CAR INSURANCE COSTS
How can drivers save on their auto insurance?
Nearly half of survey respondents said they believe they are paying too much for car insurance. But the survey also showed how drivers are shopping for new insurance rates.
Forty-two percent of survey respondents said they shopped for car insurance coverage by using an online comparison site to view multiple insurance premium options. Twenty-seven percent said they went directly to insurance companies’ sites and 19% said they talked to an agent of a specific provider.
"Interestingly, perhaps the most tech-savvy generation, Gen Z, use comparison sites much less often than other generations, with only 31% responding that it is their primary form of shopping," the survey said. "Instead, it seems that much of this group talks directly to agents for specific companies (32%). A lot of these young adults may be simply going with the car insurance company that their parents use since they aren’t as familiar with how insurance works and what to look for."
Using a comparison site is a good way to make sure you are getting the best prices on car insurance premiums. Because different companies weigh factors like your credit score, a clean driving record and deductibles differently, and give car insurance discounts for different things, it's important to compare rates from multiple providers to get the most affordable car insurance. Visit Credible’s online marketplace to get prequalified for your auto insurance policy without affecting your credit score.
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