Forty-nine percent of respondents said they think they pay too much for auto insurance, according to an Expertise.com survey. (Photo: Shutterstock)
Although Americans nationwide saw reduced auto insurance rates amidst a drop in driving activity at the height of COVID-19 lockdowns, nearly half of drivers believe they are paying too much for car insurance, according to a recent survey from Expertise.com.
The professional services research and resource company found through its survey of 1,000 American adults that drivers pay an average of $215 a month for auto insurance, with the median amount at $133. The survey also revealed generational differences in auto insurance costs, with Gen Z paying double, on average, compared to baby boomers and older.
What follows is a breakdown of average costs by generation, according to Expertise.com:
- Gen Z: Average cost: $270, Median cost: $208
- Millennials: Average cost: $228, Median cost: $133
- Gen X: Average cost: $189, Median cost: $125
- Baby boomer & older: Average cost: $135, Median cost: $100
Across generations, 49% of respondents noted that they think they pay too much for coverage; however, two-thirds said they only shop for better rates once every few years (40%) or never (22%).
The survey also found that 77% of respondents only switch carriers every few years or never. This is contrary to most expert advice that recommends drivers shop for auto insurance rates every six to 12 months because insurers often change underwriting criteria, meaning a driver may qualify for a better rate, and some insurers offer discounts on the first policy term, resulting in savings.
Because of consumers' dissatisfaction with auto insurance costs paired with a lack of effort to save money amongst the majority of respondents, Expertise.com concludes that 62% of drivers may be missing out on savings by not regularly shopping for new rates.
On the flip side, however, insurers may also offer loyal customers discounts. But Expertise.com warns that premium increases often offset these discounts. The Zebra explains that loyalty discounts are a price optimization practice that involves insurers offering a loyal customer a 10% discount while raising their rates by 30%.
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