Top 5 Mistakes That Make Your Car Insurance More Expensive
Are you paying too much for car insurance? Discover the top 5 mistakes that are driving up your premium — and how to avoid them. Proven, practical tips included!
I remember the first time I opened my car insurance renewal letter and nearly choked on my coffee. The premium had jumped up again. I hadn’t had an accident. I hadn’t filed a claim. Heck, I’d barely driven 5,000 miles that year. So why the sudden hike?
If you’ve found yourself in a similar situation, you’re not alone. Over the years — through trial, error, and a few costly mistakes — I’ve figured out why so many of us end up paying more than we should for auto insurance.
In this article, I’m going to walk you through the Top 5 mistakes that secretly (and not-so-secretly) make your car insurance more expensive, and what you can do to avoid them. These aren’t just random tips. These are mistakes I’ve made myself — and trust me, learning the hard way is expensive.
Mistake #1 — Not Shopping Around Every Year
Why It Hurts Your Wallet
One year, I let my car insurance automatically renew without a second thought. Big mistake. I later found out I could’ve saved $372 just by switching to another top-rated provider offering identical coverage.
Many people assume loyalty pays off with discounts. Sadly, that’s not always true. Insurance companies often increase rates for long-time customers, assuming they won’t shop around.
Pro Tip: Use comparison tools like The Zebra, Policygenius, or NerdWallet to check multiple quotes at once.
What You Can Do
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Set a reminder 30 days before your renewal date.
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Get quotes from at least 3–5 insurers.
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Ask your current insurer if they’ll match a lower quote. Many will!
Mistake #2 — Picking a Low Deductible “Just to Be Safe”
Why It Sounds Smart (But Isn’t Always)
I used to think choosing a low deductible — say $250 — was the responsible, adult thing to do. After all, if something happened, I’d only pay a small amount out of pocket.
But here’s the kicker: the lower your deductible, the higher your monthly premium. Unless you’re accident-prone (no judgment!), you’re essentially paying more for peace of mind you may never use.
What I Found Helpful
When I increased my deductible from $250 to $1,000, my annual premium dropped by almost $400. That’s a pretty big deal if you’re a careful driver and can afford to cover a bigger emergency cost once in a blue moon.
Mini Buyer’s Guide Tip: Only raise your deductible if you have an emergency fund or credit card buffer to cover it if needed.
Mistake 3 — Ignoring Your Credit Score
Yes, Your Credit Score Affects Your Insurance Rate
This one surprised me. When I was fresh out of college with barely any credit, my insurance quotes were sky-high. At first, I thought it was my old beater of a car — turns out, it was also my low credit score.
Most U.S. states (except a few like California and Hawaii) allow insurance companies to use your credit-based insurance score to set premiums. The lower your score, the riskier you appear.
What Helped Me Lower My Rates
As I worked on improving my credit (paid down some debts, kept my credit card usage under 30%), I noticed my insurance rates started to drop. Not immediately, but over the next couple of years, it added up.
Helpful Tip: Use tools like Credit Karma or Experian Boost to monitor and improve your score.
Mistake #4 — Not Bundling Your Policies
I Thought It Was Just a Gimmick
until I bundled my renter’s insurance and car insurance with the same provider and saved 17%. That’s right — just for making their life easier.
Most insurance companies love giving out discounts for multi-policy customers. It means more money for them, less paperwork, and fewer chances you’ll switch.
What to Ask Your Insurer
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Do you offer multi-policy discounts?
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Can I bundle my home, renters, or even life insurance?
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Will this discount last every year or just the first?
Mistake 5 — Not Updating Your Mileage and Driving Habits
My Pandemic Discovery (That Still Saves Me Money)
During the pandemic, I was working from home. My car sat in the driveway for weeks. Yet, I was still paying the same premium as when I was commuting 30 miles a day.
That’s when I learned: Your driving habits directly affect your rate. If you’re now driving less, working remotely, or only using your car on weekends — tell your insurer. You might qualify for low-mileage discounts.
What Worked for Me
When I updated my annual mileage from 12,000 to 5,000, my premium dropped nearly 20%.
Quick Tip: Some insurers offer usage-based programs (like Progressive Snapshot or Allstate Drivewise) where you plug in a device or use an app to track your driving. Good habits = lower rates.
Quick Buyer’s Guide: How to Choose the Right Insurance Plan
If you’re overwhelmed with all the options, here’s a bite-sized guide:
| You Are... | Look For... |
|---|---|
| A New Driver | Accident forgiveness and good student discounts |
| A Remote Worker | Low-mileage plans or pay-per-mile insurance (e.g. Metromile) |
| A Family | Bundle home + auto policies, add multiple vehicles |
| A Budget-Conscious Driver | Higher deductible, minimum state coverage, safe-driver discounts |
Bonus Tip: Always ask about hidden discounts — safe driving courses, anti-theft devices, even being a teacher or nurse can score you a deal.
FAQs About Expensive Car Insurance
Why is my car insurance so high for no reason?
There’s usually a reason — even if it’s not obvious. It could be a recent change in your credit score, regional rate hikes, expired discounts, or even unnoticed driving violations.
Does paying monthly cost more than paying annually?
Yes. Monthly payments often include service or processing fees. If you can afford it, pay your premium annually for a small discount.
Can my job affect my insurance rate?
Surprisingly, yes. Some professions (teachers, engineers, nurses) are considered low-risk and may qualify for discounts. Always check with your insurer.
What’s the #1 way to lower my insurance?
Honestly? Shopping around and comparing quotes yearly. It’s the single biggest way to save without changing how you drive.
Conclusion: Small Tweaks = Big Savings
In my experience, reducing car insurance costs isn’t about drastic changes — it’s about knowing what to watch for. A few small decisions, like increasing your deductible or correcting your mileage, can add up to hundreds in savings.
Don’t wait until renewal time to make adjustments. Be proactive. Review your policy regularly, ask questions, and treat insurance the way you’d treat any other bill — with eyes wide open.
Your Turn — What’s Your Insurance Horror Story?
Have you ever discovered you were overpaying for car insurance? Did you find a clever hack to reduce your premium? I’d love to hear about your experience in the comments below. We’re all in this (traffic jam) together!
