The No. 1 Mistake People Make With Car Insurance

Too many drivers treat car insurance like a set-it-and-forget-it expense. You find a policy once, set up autopay, and renew each year without a second thought. But this habit can quietly cost you hundreds of dollars a year.

A 2024 survey by Consumer Reports found that just 30% of drivers switched insurance providers in the past five years -- but those who did saved a median of $461 per year. That's a big payoff for a small amount of effort.

If you haven't reviewed your policy or compared quotes in a while, there's a good chance you're overpaying. Here's what to know.

Car insurance rates change often

Even if nothing has changed on your end, your insurance company may change your rate. And your personal situation might have shifted in ways that can affect your premium:

• You've gotten older or improved your credit score
• You moved to a different ZIP code
• You drive less
• You added safety features to your car
• You've had an accident or a traffic violation

All of these factors can affect how much you pay, and not all insurers weigh them the same way. One company might see you as a lower risk, and charge you a lower premium, than another.

You can even set a yearly calendar reminder to review your policy and compare some quotes. Then you'll know you're not missing an easy opportunity to save money.

With our free tool, you might be able to save hundreds of dollars per year just by switching car insurance -- and it only takes a few minutes to find out. Check it out to compare rates from the top companies today.

What to check when you compare

When shopping around for a new policy, make sure you're comparing apples to apples. Don't just look at the monthly premium. Dig in to the details and ask questions like:

• Are the liability limits the same?
• Is the deductible the same?
• Are you getting the same add-ons, like roadside assistance and rental reimbursement?

You might be able to get discounts, too. Some insurers offer savings for bundling with home or renters insurance, having a clean driving record, being a student with good grades, or even paying in full up front.

Make your policy fit your needs

If your life situation has changed, a car insurance policy that made sense three years ago may no longer be a fit. Maybe you now work from home and drive half as much. Maybe you moved to a lower-crime area. Or maybe your teen driver is away at college and isn't on your policy.

Do an annual review to update your insurer on any changes and check that your current coverage would still protect you in a real emergency.

Ready to get started? Check out our free tool to compare rates and potentially save hundreds of dollars on your car insurance today.