America's best drivers are missing out on saving $416.52 per year by not shopping around for car insurance, according to a new report from NerdWallet.
Related: Car wreck: Personal Auto net incurred losses could soon reach record high
To determine the amount of savings drivers miss out on by not shopping around for car insurance, NerdWallet compared two sets of rates: the three cheapest annual car insurance rates in each state among large insurers, and the average annual rates among all large insurers in the state, within which rates were weighted according to each insurer's market share in that state.
Unchecked
In the “2017 Driving in America Report: The Costs and Risks,” Harris Poll conducted an online survey of 2,072 U.S. adults ages 18 and older. According to the survey, 38% of Americans who have car insurance haven't checked the price, or compared costs, of their current car insurance in at least three years — or ever. Another 21% haven't checked in at least three years, and 17% haven't checked at all.
Related: Auto premium increases put strain on insurers' customer satisfaction
At the same time, however, 28% of Americans who currently have car insurance think they pay too much for it. One third (33%) of millennials (ages 18 to 34) think they pay too much for car insurance, yet 26% say they have never price checked car insurance.
In comparison, 14% of adults ages 35 and older said they have never price checked car insurance. Out of all adults, 17% say they've never price checked their car insurance.
(Photo: Shutterstock)
Missing out
According to NerdWallet's data analysis, residents of Delaware, Michigan and Connecticut are the most at risk of losing money on their car insurance premiums — up to $1,845.59 annually on average.
Related: Auto losses ahead? The 10 states with the worst roads in the U.S.
See the chart below with the top five states where potential car insurance savings are the biggest.
Paying for fraud
NerdWallet's report also found that consumers and insurers pay a high price for auto insurance fraud due to padded claims, which totaled $5.88 billion for bodily injury and personal injury protection claims in 2013 (the most recent year data is available).
Related: The art of bodily injury investigations
According to NerdWallet, 23% of Americans who have or have had car insurance say they've filed a claim. Among that group, 7% admit to padding auto insurance claims by doing one or more of the following:
- Adding more damage to the car for the claim.
- Misstating the cause of a car accident.
- Including pre-existing damage in a claim.
- Overstating repair costs.
- Exaggerating the extent of pain or personal injuries.
Below are the states where claims padding costs the least and the most.
Read NerdWallet's “2017 Driving in America Report: The Costs and Risks” to learn more.
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