7 Warning Signs You're Paying Too Much for Car Insurance

Car insurance can be expensive, but you may be paying even more than you need to.

When was the last time you considered cost-saving changes to your policy or tried to find more affordable auto insurance coverage? Your policy could be outdated, and there might be better options available.

Go through your policy and look for any of these warning signs that you might be paying too much.

In a busy world, comparing insurance quotes is probably the last thing on your mind. It’s easier to simply renew your policy automatically.

But that can be a big mistake. Getting quotes from multiple insurers is one of the best — and easiest — ways to quickly cut your insurance costs. There is a good chance another insurer offers the coverage you need at a better price than what you pay now.

Things can change fast in life. Perhaps you are working from home now, and drive less than you did when commuting to an office. Or maybe your teen has grown up and no longer needs to remain on your insurance policy.

If so, let the insurer know about these changes. They could save you money.

Insurance companies often offer programs that give you the chance to save money if you agree to let the insurer track your driving habits.

For example, you might earn a discount for driving safely or for driving fewer miles than the average driver. If you are comfortable having your insurer track your driving, ask about these programs and find out how much you can save.

There are many different ways to qualify for discounts your insurance company offers. So, give your insurer a call and see how you might boost your savings account by keeping some extra cash in your wallet.

Insurance companies may knock down the cost of your premiums if you insure multiple cars on the same policy, remain with the insurer over a long period, or have a child who earns good grades, for example.

Signing up for your insurer’s auto-pay system can save you cash. When you agree to do this, your policy will automatically renew, with the payment coming straight out of your bank account or going to your credit card.

Insurers often offer a discount to policyholders who agree to use auto-pay. Some insurers also might offer a discount to those who sign up for paperless billing.

Raising your deductible from $500 to $1,000 can lower your premium, but it might not be the money-saver you think. For example, while the average premium might drop by $150 a year, you’re taking on an extra $500 in out-of-pocket costs if you need to file a claim.

If you're in an accident within just three years, the amount you save on premiums won't cover the higher deductible, leaving you financially worse off. Always calculate whether the lower premiums offset the risk of paying more upfront.

A great way to save money is to bundle your auto insurance with other coverage. Perhaps you have a homeowners or renters insurance policy with a different company. You also might have policies with another insurance provider that cover other vehicles like a motorcycle or boat.

Insuring all these things with one company might get you a discount. Check with your auto insurance company to see what types of other insurance they offer and how purchasing all your policies with one insurer might save you cash.

Car insurance can be a big expense for drivers, but there are ways to save money. Even minor adjustments in coverage can trim your bill.

Revisit your policies on a regular basis to make sure you’re getting the most out of your coverage. Also, look for other ways to cut your car-related costs, such as using one of the best cash-back credit cards for gas that can earn you money back or other rewards.