Ballot Says Most Individuals Pay Too A lot For Auto Insurance: How To Decrease Your Tariff Now – Fox Enterprise

Most motorists think they are paying a fair price for their car insurance, but experts disagree. (iStock)

With auto insurance prices soaring in 2021, nearly half of American adults think their rates are fair or very fair. However, according to a new survey by YouGov for Forbes Advisor, some experts disagree.

Aside from a sharp drop in 2020 due to auto insurance policies that offer refunds and loans for financial relief, auto insurance rates have been rising steadily for decades, according to the U.S. Bureau of Labor Statistics. That's because the prices of auto repairs and medical expenses have driven auto insurance premiums up.

However, the survey also found that among drivers who found car insurance tariffs unfair, about half had not taken any action to lower their car insurance tariffs in the past 12 months.

"While around half of consumers think auto insurance rates are fair, the notion of fairness tends to break down when people are specifically asked about the fairness of certain pricing factors, such as the use of credit," said Amy Danise, chief executive by Forbes Advisor Insurance Analyst. "This may be because consumers in general are unaware of the factors that are used in car insurance pricing."

If you'd like to see how your auto insurance rates compare or cheap auto insurance options, visit Credible to see personalized offers from multiple auto insurance providers at the same time.


3 Ways To Lower Your Car Insurance

According to the survey, motorists have learned that a variety of factors usually contribute to their car insurance rate. This includes your age, your driving license, your creditworthiness, where you live and more. Survey respondents broadly agreed that some of the non-driving factors (occupation, age) should not be included in the pricing of their car insurance.

When looking for ways to lower your insurance bill, there are a few things you need to do. Consider the following three factors to reduce your insurance costs:

  1. Improve your credit score
  2. Change your current policy
  3. Shopping for better prices

1. Improve your credit score:

If you look at the details, the survey found 69% of Americans disliked the use of creditworthiness in determining premium payments. In some states, your credit rating can help you get a better rate, so improving it can help you with car insurance.

This applies to all states except California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah, which, according to Andrew Latham, editor-in-chief of SuperMoney, a financial services comparison site, prohibit or regulate the use of credit ratings by auto insurance carriers.

2. Change your current policy

If the aforementioned factors change for a driver, he may have to change car insurance as a result. A company that may have previously offered the cheapest rates may not offer the best rates for a driver's new profile.

"People may not know that the company that offered them a great price a few years ago is no longer offering competitive prices for them," said Danise. "When driving records, credit and discount availability change, so do the cheapest companies for a particular person."

Because auto insurance companies measure factors differently, one that can offer a fair price to one driver may not offer the best rates to another. Visit Credible to view multiple quotes from different auto insurance companies across the country at the same time and see which auto insurance quote is best for you.


3. Shopping for better prices

Since your creditworthiness, driving history, and a host of other factors affect your premiums, it is a good idea to shop with different car insurance providers to make sure you are getting the best coverage available.

"We can't expect consumers to know all of the reasons that they may be overpaying for auto insurance," said Danise. "After all, people have other things to do. But buying a new car insurance deal every few years could really be an eye opener for a lot of people."

Visit Credible to compare multiple providers at the same time and find affordable auto insurance with personalized offers for you in minutes. You can find cheap auto insurance and compare rates, deductibles, auto insurance discounts, and other insurance options.


Do you have a finance-related question but don't know who to contact? Email The Credible Money Expert at and your question may be answered by Credible in our Money Expert section.

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