With all the commercials for discount auto insurance, you’ve probably asked yourself, “Am I paying too much for car insurance?”
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Data shows that most of us are overcharged by an average of $368 per year by car insurance companies. Not for long; Florida drivers can now compare quotes to check if you’re overpaying and how you can save money on your auto insurance.
Am I Overpaying For Car Insurance?
Why Auto Insurance Companies Overcharge Customers
Auto insurance is required in all states except New Hampshire. Yet while states require their drivers purchase car insurance, they do not regulate insurance pricing. As a result, too many drivers are overpaying for insurance.
The insurance industry is not transparent, which makes it difficult for customers to compare rates across carriers. Shopping for car insurance is not like browsing health insurance plans on the state exchanges, where you can compare plans by pricing and what’s covered before deciding what’s right for you. This gives auto insurers the upper hand in setting rates and in keeping their rate information hidden from customers.
The issue is aggravated by the fact that most people find it inconvenient to switch car insurance providers. Once an auto insurer has gotten your initial business, they know you’re likely to stick with them even if you suspect they could be overcharging you. This simple fact reduces their incentive to compete on price.
Overcharging on auto insurance leads some consumers who cannot afford to pay premiums to drive without insurance, which makes the roads less safe for everyone.
Are You Overpaying For Auto Insurance? Here’s How to Check
There are a lot of variables determining your auto insurance rate, including your zip code, vehicle make and model, driving history, and whether you have multiple policies with the insurer. Within the same zip code, for instance, auto insurers’ rates can vary by as much as 154 percent.
One surprising variable that may affect your insurance rate is your income.
A 2016 study from the Consumer Federation of America found that the five biggest auto insurers charged middle class and lower class drivers more for auto insurance than wealthy drivers. Across the 10 cities studied by the CFA, upper income drivers with points on their record or recent DUI charges were actually charged less that middle income drivers with clean driving records!
eTags is a comparison shopping marketplace that lets you check whether you are paying too much for car insurance, so you can start saving. By comparing quotes through eTags, you can save as much as 32 percent on your auto insurance.
To get started, enter your first and last name, your state, your license plate number, your vehicle make and year, and your VIN (this is optional, but will give you the most precise quote). Select your current insurance company and whether you rent or own (since you may save more by bundling renter’s or home owner’s insurance policies through the same insurance provider). Finally, provide your address and your contact information.
eTags will then compare quotes across major insurers and deliver a summary report to you, so you can see how much you would save by switching. Within minutes, you’ll find out exactly what you could save. There are over 115,000 customer reviews in eTags that let you learn more about other car insurers and make the switch with peace of mind.
It could not be easier to find out if you’re overcharged for auto insurance and switch insurance carriers, thanks to eTags. Save money in five minutes or less by taking just 5 minutes to compare car insurance quotes today.
Sources:
- https://consumerfed.org/press_release/major-insurers-charge-moderate-income-customers-perfect-driving-records-high-income-customers-recent-accidents/
- https://www.cbsnews.com/news/some-drivers-often-overcharged-for-car-insurance/
107 comments
This was really insightful! I was especially struck by the part of the study that showed middle and lower-income groups paying higher premiums than the upper class. Do you know why this is happening? And is it the case across all insurance providers, or just specific ones?
Hello, my car insurance expired since I was not around and I am afraid of taking it to the mechanic without it, what can I do to be on the safe side with the road rules?
You may be able to contact your existing provider or a new one to request a short term, 30 or 60 day policy, so that you can operate the vehicle for that and other immediate purposes. You can also look into self-insurance and what requirements your state would need you to meet to effectively approve that you are claiming that you the vehicle is self-insured. Best of luck.
Does your car insurance seem too expensive? I found this article on eTags really helpful! What are your tips for reducing insurance costs while staying well-covered? Let’s share our advice.
This article opened my eyes to how much I spend on car insurance. The tips provided are practical and make it easy to reassess and potentially lower my monthly premiums. I’ll use these insights to shop around and ensure I’m getting the best deal.
I believe most people are paying to much and this article does a great job at highlighting this issue! Thank you.
Is it possible to group car insurance with renter’s insurance for discounts? Are they compatible in any way?
It may be possible if you can find a provider that offers both or has partnerships with companies that offer one or other. We recommend contacting both your car insurance and renter’s insurance companies to confirm.
Can i get a car insurance for my son
You are able to get car insurance for your son. He can be on covered for his cars, if he is the registered owner, on your policy. You can search for insurance options here.
Do you have any discount package for students?
No we don’t.
Thanks for this detailed information. The car insurance industry can really be overwhelming and confusing. This really helped me to understand some of my options.
I have an older car will I be charged more
Older cars are cheaper to insure than newer cars, all else being equal. An older vehicle is cheaper to insure mainly because older cars are less valuable, so an insurer won’t have to pay out as much in the event of a total loss.
I didn’t look into my insurance rates much, but as it turns out, I am overpaying by quite a bit. Very informative article!
i definitely feel like im over paying are their ways to be sure we are not being charged for services we dont need
probably the easiest way to do so is to compare the same coverage you’re currently getting with other insurance providers
Hi, if I buy a used car that already has coverage, I must contract a new insurace?
You have to have your own insurance, once the car title is transferred to you, you’ll have ownership of it, but you need your own coverage.
I am realy confused – why does some insurance cost more than others? Should I always go with the cheapest option? Thanks
It depends on multiple factors such as where you live, how much you drive, the type of coverage you want, whether it’s a leased vehicle or not and so on. Cheapest is not always best, it’s a good idea to compare rates from at least three providers to see what works best for you.
Hello I’m also a new driver and I wanna buy a car… and if i want to transfer everything into my name how can I do it? Say please
Hey there, if you live in CA or FL, you can transfer title and register your vehicle online. Go to etags.com and follow prompts. If you live elsewhere, you can contact your local dmv online to make an appointment since many of them are operating this way due to coronavirus
I’m new driver and I wanna buy a car… and if i want to transfer everything into my name how can I do it?
If you buy from a dealership, they’re most likely to handle all the paperwork such a title transfer and registration. If you buy from a private seller, you’ll have to do that by yourself. Depending on where you live, you’ll have to go to DMV or use online services such as eTags. We operate only in MD, FL, and CA for the time being. You also want to make sure you get a bill of sale and title in your name.
I’m looking for car insurance not expensive for me ? T What are your recommendations ? thanks
hey there, it’s best to compare a few companies and their rates. Factors such as where you live, what car you drive, and the type of policy will determine your rate. so make sure you compare the same type of policies.
Why do the insurance cost more. My car insurance is just too high.
There are many factors that come into play from location to type of car, driving history and more. You can always compare rates from a few providers to see cost for coverage.
How much is car insurance supposed to be?
Rates vary depending on a few factors such as where you reside, your policy coverage, the vehicle model and more. Research, shop and compare.
I was in doubt because they charged me so much, THANK YOU
I am a new driver under my mom’s insurance, is $300 a month too expensive?
That depends on a lot of factors, where you live, what car you’re driving, if you have any prior accidents and so on. the best is to compare rates as you get quotes from various companies. at a first glance though that does sound a bit high for an insurance payment.
Doesn’t your car insurance also increase when you get into car accidents?
Yes, it typically does. Car insurance rates go up 31 percent, on average, after one at-fault accident with more than $2,000 in damage, or by $450 a year, according to
Car Insurance .com
im paying $1,550 per year, am i paying too much?
Insurance rates depend on many variables from where you live to make and model of car to your age and type of policy you have. compare a few quotes to see if you’re getting the best deal.
I have a house of my dad. He has been died few days ago. But the house paper is lost. What I do now??
we don’t deal with property titles, we do title transfers for vehicles.
The reason why insurers overcharge has more to do with our assumption that people don’t have time to evaluate different options. eTags advices drivers to double-check what best works for their budget. It saves a lot of money.
What are the penalties for driving without car insurance? Can you get jail time?
The penalties depend on the state, some will suspend your license, while others have $500 to $1000 fees and so on. You would have to do additional research to find specific details.
I am trying to sell a house that my dad gave to me. I do not have the title with signature on it. What are the others documents I need to complete this transaction?
We don’t deal with home titles, we’re an online registration and title transfer services company.
I really think about the idea of overpaying in car insurance but I always ask myself this question, why do people end up paying it even if they know it is expensive? why do people see the commercials on tv about the cheapest insurance yet they do not want to switch?
Hey Alex, you pose a good question, but sometimes there are complications to switching insurance companies such as driving records, family policies, comfort zones. It took me a while just to make the phone call.
Hi, i want to sell my father car. She have not yet transferred the title into her name. What she need for complete that transaction? Thank you so much bro.
In most states you need the title, the ID and proof of insurance.
Hi, i want to sell my girlfriends car. She have not yet transferred the title into her name. What she need for complete that transaction? Thank you so much bro.
Hello Issac. Your girlfriend will need to title the vehicle into her name by visiting her local DMV agency. Requirements vary based on your state of residence. Consider bringing the following:
Original vehicle title
Bill of Sale
Payment of fees.
There may be other requirements but you’ll need to contact your local DMV agency for further information.
Yes,I just bought a car and want to transfer everything into my name how do I do it?.
We would need the title, driver’s license and vehicle insurance.Visit etags.com/ap/fl
So I want to transfer the title of car to my name, what are the necessary documents will I need being a foreign resident?
Hello Aamna. Each state works differently, but you will need to get the filled and signed pink slip from the seller. Then you will need to take that title to your local DMV agency.
The DMV may require additional documents such as:
Bill or Sale/ Transfer of Ownership form.
Odometer reading.
Sales price information.
Lienholder information if applicable.
Contact your local DMV agency for more information about title transfers in your state. Good luck.
Hi I’m looking for car insurance for my daughter. The insurance rates for 3 adults and a teenager are ridiculously high. What are your recommendations for insurances that can fully cover all 4 of us but are relatively not that expensive?
Hello Jayed. You may consider comparing prices by contacting multiple agents for quotes. Browse online or ask your agents for specific discounts that you may qualify for.
Sounds interesting.
Hello Noriel. Thank you for your feedback. Here is another article that gives valid points about auto insurance rates by state.
I’m curious, how would one go about getting the ‘good student’ insurance discount I’ve heard so much about. I get good grades, and I’d like to see the savings.
Hello AL. You will have to discuss discount opportunities with your agent as every auto insurance have their own screening policies.
I was curious that if we owned multiple cars in our family if we are eligible for a discount? Thanks!
Hello Rob. Every auto insurance company offers their own set of discounts which are either specified online or by asking them directly. You will need to contact your agent to find out whether they offer discounts to drivers with multiple vehicles insured under the same family policy. They might offer packages that you currently ignore. Good luck!
This is very informative article, I’ve been thinking about getting insurance for my car of what is best and almost all of my questions that I have had been answered. Thank you so much!
Hello Yukes18. Thank you for your kind note. We regularly post articles about vehicle-related topics on our blog site. Feel free to navigate and share if you think it could help someone else.
how to lower insurance rating?
There are many ways you can reduce your insurance rates either by looking at your profile as a driver o improving your skills. Contact your agent for more information about insurance discounts.
how can i learn more ?
Hello Ralph. You could start by talking to your agent to find out whether they offer any discount based on your records. It never hurts to make questions.
Hi I’m looking for car insurance for my daughter. The insurance rates for 3 adults and a teenager are ridiculously high. What are your recommendations for insurances that can fully cover all 4 of us but are relatively not that expensive?
Hello Lois. Not sure about your specific situation but most auto insurance companies set high premiums for families who want to insure young drivers, drivers with bad driving records, and DUI motorists. You are advised to check on your daughter’s profile and identify ways in which you could be eligible for a discount. It’s also vital that you talk to your insurance agent for more information about insurance discounts.
How do you think we can put an end to this overpayment of car insurance?
Hello Ralph. You could find out by learning more about any possible discounts given by the insurance company you signed up for.
is getting an insurance mandatory?
Hello Fakhar. Getting an auto insurance is mandatory in every state but New Hampshire. You need to be protected against financial loss in the event of an accident or theft.
I love the idea of eTags. Technology is th most beneficial when it comes to helping save money, especially in areas where you can’t avoid the bill that arrives every month. Car insurance in Florida is extremely expensive and keeps rising so this tool will definitely be helpful!
Thank you for your feedback, Cassandra.
I really think about the idea of overpaying in car insurance but I always ask myself this question, why do people end up paying it even if they know it is expensive? why do people see the commercials on tv about the cheapest insurance yet they do not want to switch?
Hello Bruno. Typically, people don’t want to deal with insurance applications because of the time they have to invest in researching for the best policy. Even when you find the “cheapest” auto insurance company, your profile may not necessarily meet their requirements for cheap coverage. It could so many factors that consumers usually stick to the one they always work with.
How do you think we can put an end to this overpayment of car insurance?
Hello Bob. It depends on your profile and the method every insurance company uses to determine your rate. Perhaps your zip code is affecting your rate or you may be paying for add-ons that makes it even more expensive. What you need to do is compare auto insurance quotes from different agents and determine which policy suits your budget.
Since states can not regulate car insurers, do not you think that these companies operate in an oligopoly scheme? (price agreement) … what can we do about it?
Hello Elia. Each state has its Department of Insurance who are in charge of regulating the way insurers set their rates. Now, every state works differently when it comes to exerting pressure, which is why there are some discrepancies when it comes to policies from one state to another.
Why does Insurance cost vary depending on a cars’ model year?
Hello Woodolph Bernard. Insurance agents usually want to know about your vehicle’s model year for two reasons: Safety ratings and theft. Does the vehicle you are planning to buy offers a strong driver and passenger protection? Is this specific model often stolen? Keep those questions in mind as they could help you get lower insurance rates.
On average, how much would someone like me in GA save? Good tips!
Hello Rose! It all depends on your driving profile and the add-ons that are outlined in your policy.
hi its twan. In florida car insurance cost more than rent. i was paying over $550 dollars for insurance i wonder can i get a lower payment in my car and house was on the same insurance?
Hello Twan. Some companies offer a “multi-policy” discount to people who buy auto and home insurance together. From that premise, you could save a lot of money since you are putting both assets together. Yet, knowing that your main purpose is to reduce on costs, comparing rates between different insurance providers is vital.
I’ve found that zip code makes a HUGE difference in California, and one needs to play some major games to save on auto insurance. Having home in San Francisco vs. South San Francisco (a couple miles south) can mean 25% rate change easily. Same extends to commercial auto insurance. I was told that if I can move my base to Sacramento (I can still run out of San Francisco as I am allowed more than one “terminal”) my rate can be 2/3rd lower. WTF.
Now, I understand the matter so much clearly by reading this post, What i actually was searching for.. I i found the blog and got all my questions answers, and also my car insurance is very expensive, Is there any way to reduce the amount ? I will be glad to know the question answer. Thank you.
Hello Moryom. It’s always good to know that everyone gets informed about auto insurance. If you are paying too much money on your car insurance, click here to help you save money in few minutes.
Since states can not regulate car insurers, do not you think that these companies operate in an oligopoly scheme? (price agreement) … what can we do about it?
Hello Elia. Each state has its Department of Insurance who are in charge of regulating the way insurers set their rates. Now, every state works differently when it comes to exerting pressure, which is why there are some discrepancies when it comes to policies from one state to another.
I’m confused – why does some insurance cost more than others? Should I always go with the cheapest option?
Hello Eric. It all depends on your driving profile and the add-ons that are outlined in your policy. Going for the cheapest option is not always the best thing to do because you may not have enough coverage. If you are looking for auto insurance, click here to help you compare quotes. We can find you an auto insurance that best suits your needs and budget.
Wow, this was some really great information. I found the part in there from the study where middle and lower class were paying higher premiums than the high class. Do you know why this is? And is this true across all providers or just certain ones?
hello Harley! The reason why insurers overcharge has more to do with our assumption that people don’t have time to evaluate different options. eTags advices drivers to double-check what best works for their budget. It saves a lot of money.
Hey. I live in Georgia and I have two cars and a house. I bundled all of them for a big discount. The first year was great, but the second year went up a couple hundred for the year and the year after that a couple hundred more. Im over 500 dollars from two years ago. I need to get my rates back down. I have not changed anything or had any accidents/tickets. What should I do, and where should I look?
Hey Jamie. It never hurts to shop around. Insurance providers will often increase rates under the assumption their customers will not take the time to look elsewhere once they have committed to a policy. Taking a few minutes to reevaluate your options every few months could be the difference in saving hundreds of dollars.
My car insurance is really expensive, is there a way I could get a discount?
Hey John. Are you a resident of Florida? If so, we recommend using our auto insurance calculator which might just help uncover some car insurance discounts to help save you a buck or two!
I have seen a lot of similar articles to this one but I wonder if Etags is just going to be like other legitimate insurance quote sites.
Hey Tam. We continue to uncover auto insurance discounts for numerous Florida residents. All it takes is a few clicks
I have multiple cars and a home. Can I get a discount if I insure all of them together with one provider?
Hey Daved. There’s most likely some sort of discount waiting to be uncovered if you were to bundle. Give us a call and we would be happy to help you find out.