5 Signs You’re Overcharged On Your Car Insurance

Imagine a world without cars! Okay, let’s just say that cars were there but no insurance company provided motor coverage.

It goes without saying, that owning a car would be more challenging. You would need to cover the cost of damages in case an accident happened, cater for the cost in case you hit a person on the road or your vehicle was stolen?

We all know the importance of car insurance but this doesn’t mean that you have to pay extremely high for it.

Interestingly though, there is a way to tell if your insurance company is overcharging you for car insurance. Here are 5 signs you are paying higher than you should for your car insurance and should probably look for another insurance provider.

1. You Pay More On Top Of the Premium

It is not a new thing to come across providers that allow you to pay for your premium as monthly installments. Well, most of them, in this case, will charge an extra amount for that, say $10 on top of your premium.

As much as this amount may look little at the time of paying, it will total to $120 at the end of a year on top of your annual premium. This is a good sign you’re being overcharged.

A good way to ensure you avoid such extra costs is to look for a provider that allows you to pay monthly installments without any penalties or charges.

2. There Are No Discounts

While discounts are not a must, most of today’s car insurance providers offer them for certain things. Aspects such as lower driving mileage per day or having a safe-rated car can get you insurance discounts from certain companies.

3. Rates Remain High Even With Improved Your Driving Record

It is common to find yourself paying more than the usual amount if your driving record isn’t that impressive.

Once certain taints on your driving record are removed and you manage to stay away from infractions, your driving record is said to have improved; and so should your insurance rates. in other words, the provider should offer you a lower rate.

If the rates do not improve, it is a good sign that your provider is overcharging you on your car insurance. In such a case, finding a company that appreciates you for careful and safe driving would be a wise move.

4. You’re Paying More Than The National Average With An Average Driving Record

In most cases, insurance companies give quotes depending on factors such as age, gender, marital status, and type of car.

While this is the case, your car insurance still shouldn’t be above the national average, which is approximately around $840 according to the Insurance Information Institute. Paying higher than this amount is probably a sign that you’re being overcharged.

However, there are some exceptions. Serious driving violations like DUI and frequent speeding tickets may get you paying more than this estimate annually, not forgetting the fact that some of them take up to 7 years before being removed from your driving record.

5. You Have Good Credit Score but Still Pay More

While it may not be an obvious consideration, some insurance providers do consider your credit score when providing you with a quote.

If you have a good credit score and you are still paying more than the national car insurance average (without a bad driving record), then you’re probably being overcharged.


Being overcharged for car insurance is not something many people can put up with. However, knowing you are being overcharged is where the challenge really is.

To know whether you’re paying more than you should for your auto insurance, consider the points above. these should help you decide whether or not you should look for a new provider.