Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Car Insurance Agent for 15 Years

UPDATED: Dec 20, 2021

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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A Brief Overview

  • It is possible to pay too much for car insurance
  • If you are paying too much, consider lowering your coverage amount or increasing your deductible
  • A different insurer may be able to offer you a cheaper price

Is it bad to have too much car insurance? Usually not, as more coverage gives you and your vehicle more protection. However, you may find that the bill is expensive. You should attempt to lower your rates with your current insurer if possible.

If not, a competing insurer may offer you better rates on complete insurance protection.

Now that you know it isn’t bad to have too much car insurance, enter your ZIP code into our free quote tool to see what you could pay for a new auto insurance policy today.

How do I know if I have too much car insurance?

The recommended car insurance coverage for you is likely more than just the required amount of liability in your state. If you value your vehicle, you’ll want to make sure that it’s protected against a variety of hazards, not just what’s required.

Unless you’ve got multiple policies, there’s likely no chance that you have too much car insurance. While it can get expensive, the more coverage you have, the better protected you will be.

That being said, you still will want to make sure that your policy isn’t inconveniencing you. If you experience any of the following issues, it might be time to reconsider your car insurance coverage.

  • The bill is too much for you to pay
  • You have more than one auto insurance policy
  • You lose your car or otherwise need to customize coverage

If you need to, you can likely adjust your car insurance policy at any time. But, as with anything, it’s best to let your insurer know ahead of time.

If you need extra insurance to cover any loans on your vehicle, you can purchase GAP insurance.

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How much car insurance coverage do I need?

The type and amount of car insurance coverage you need will likely depend on your situation. Before you enroll in a policy, you’ll need to consider any potential dangers that your vehicle could face on the road.

Some of the types of auto insurance you can enroll in include:

  • Liability – When you damage someone else’s property or cause bodily injury, this covers your legal liability to pay for damages required in 48 states.
  • Collision – This covers damages done to your vehicle when an accident occurs out on the road.
  • Comprehensive – This policy protects your vehicle from theft, weather damage, and vandalism.

There are other types of coverage, but these are the main types that will apply to most people. While liability is the only insurance required in most states, you may want to pay for the additional coverage, lest you be stuck with a hefty repair bill or without a vehicle.

How much is too much for car insurance coverage?

If you don’t have a lot of coverage but still find yourself paying too much, there may be other issues with your policy. For example, you could be in a high-risk category, or your insurer could be charging you more than you should be paying.

If you think your insurer is charging too much, you should compare your rates to those offered by other insurers.

What is the average cost of car insurance coverage?

According to the Insurance Information Institute, the average cost for a year’s worth of car insurance is around $1,500. But, of course, this will vary depending on the amount and types of coverage you have.

Am I paying too much for car insurance? If you have an extensive policy and the price is too high, consider cutting back on some unnecessary coverage options.

What can cause rates to go up?

The process an insurance company uses to determing your rates is called underwriting. An insurance underwriter evaluates the level of risk you pose to the insurer having to pay out on a car insurance claim. If you pose more risk than others, you will likely have a high-risk designation.

If this happens, the insurer will raise your rates to cover the risk. Some of the factors that result in high-risk classification include:

  • Bad driving record
  • Poor credit history
  • Past claims

If you’re worried about how your insurer will view your past, you can rest a little easier knowing that high-risk events like these only stay on your record for a few years.

If you can manage to pay the rates or find additional ways to save for three to five years, you can lose your high-risk designation. That being said, you’ll also have to avoid getting into any more accidents or doing anything else that will be perceived as high-risk behavior.

How can I lower my costs for car insurance?

If you find that your insurance rates are too much for you to afford, you should consider some actions to lower the cost. You can try:

  • Raising your deductible
  • Driving a less valuable vehicle
  • Comparing quotes from competing insurers
  • Looking for discounts you are eligible for

Raising your deductible will mean paying more if you’re involved in an accident or other incident involving your vehicle, but it will lower your rates.

Furthermore, getting quotes from some competing insurers will help you better understand if your rates are too high or in line with the industry standard.

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Too Much Car Insurance: The Bottom Line

If you’re worried about having too much or paying too much for car insurance, the solution can be as simple as re-examining your policy. A competing insurer may also be able to help you save.

Since you know it isn’t bad to have too much car insurance, enter your ZIP code into our free quote tool to see what you could pay for a cheaper policy today.