What is the Right Price for Auto Insurance? [Infographic]

Have you ever wondered if you’re paying too much for auto insurance? Sure you have, each time you pay the bill or you see the EFT transaction for the monthly payment on your bank statement. What is the right price for auto insurance anyway?

Getting a great deal, or getting a bargain is as American as apple pie. We all want to make sure we’re getting a good deal when we buy products or services. However, it’s not always as transparent as we’d like, and understanding what a good price is may require additional information.

Auto insurance is one of those types of products, prices can actually vary a lot from company to company, and the coverage offered isn’t always the same.

So what is the right price?

The right price for auto insurance can mean something different for everyone. If you don’t have a lot of extra money in your monthly budget, the answer may actually be pretty simple, it’s what you can afford.

However, if you have assets, and not living the struggling college student lifestyle, then the right price is the one that provides you with the right protection but comes at a reasonable expense.

Let’s be real, for the vast majority of us, it’s something less that we we’re paying right now. 🙂

Get an insurance agent

The only real way to know is to compare limits, deductibles, and insurance companies that offer a similar breadth of coverage options and the service. Only by comparing apples to apples can you know if you’re getting a good price on auto insurance.

To properly compare auto insurance, we recommend an independent insurance agent because they are the original providers of comparison auto insurance quotes. An independent insurance agent can shop your insurance with several companies, like Travelers, Safeco, Progressive, Mercury, or NatGen Premier, and see which is the best match.

And not only can they shop for you, but when dealing with an insurance agent, you have access to a real professional who can answer your questions about coverage. Not just the liability limits and deductibles you want to select, but the really covered within the four corners of the policy contract.

Of course, you can call captive agents (those who represent a single insurance group like Allstate), or try your luck with online insurance carriers. These options are good too, but it will be more complicated to compare the coverage (not just the limits and deductibles), as you’ll have to do all the leg work yourself.

How much do people pay for auto insurance?

Now we’re getting to the point. There are many factors that go into this, and not all people will have the “average” customer profile, but this may be helpful information for you. And our friends at CJ Pony Parts put together the infographic below to help you see the averages across America.

We noted that California doesn’t show up in the graphic, so we dug in to see what the average auto insurance expense is for California. According to The Insurance Information Institute, auto insurance expense is 24th out of 51 (All states including the District of Columbia). We Californians pay an average $740 per vehicle insured. For liability-only policies, the average is a mere $442.

So enjoy the information in the infographic, and contact us if you want to talk about auto insurance. 🙂

Note: This data is provided as a national survey of auto insurance premiums, and some of the discounts and rating variables may not be available in California.

Wrapping it up

There are several ways to save on auto insurance, and you should explore all that are available. Make sure to contact an independent insurance agent, one who has appointments with the “preferred” auto insurance companies, like Travelers, Mercury Insurance, The Hartford, or Progressive. You can get real comparisons of coverage, limits and deductibles, and price.