You Are Probably Overpaying for Car Insurance
Choosing an auto insurance provider is a lot like filing your tax return. It’s not sexy or arousing, but you do it because you have to. However, the options are countless, and you just pick what sounds good or has the best advertising (… right?). Some of them claim to have saved you more money than others, but how much are you actually saving?
According to Gabi.com , which helps you weed out less expensive insurance packages based on your existing policy through its policy database from top insurers, here’s the odds of how much you’re overpaying based on your insurance company:
For this analysis, Gabi analyzed information entered by its users, as well as information available on the Internet from the most popular auto insurers, to compare 220,000 auto insurance rates. According to the chart, farmers appear to be one of the worst offenders on how much consumers are overpaying. Gabi’s data showed that many can save a lot by changing the provider:
We found that their auto insurance alone saved an average of $ 707 per year (excluding discounts on multiple policies). This represents savings on comparable coverage (or even better if we could not exactly match the previous coverage) offered by competing insurance companies. If your vehicle is insured by Liberty Mutual, Nationwide, and State Farm, you’ll save $ 500 on average.
Crap.
You may be wondering why insurance companies overcharge you. According to Gabi founder Dr. Hanno Fichtner, it’s because they can. “There is little transparency in the industry, and it is well aware that changing providers is a huge problem that most consumers simply don’t want to deal with,” he said.
If you are currently insured by one of the insurers listed above, you can use sites like NerdWallet or Insurify, which have tools to help you compare rates, although they usually require you to manually enter your information in order to see the comparison rates. … You will then need to go to the insurer’s website to change or purchase a policy. You can use Gabi.com to see how much you are paying compared to other insurance companies and switch right away if you find a better deal. Be sure to read the quotes carefully because price differences can also mean a difference in coverage.
Why You Are Probably Overpaying For Auto Insurance | Gaby
Update: The article has been updated to reflect the expansion of Gabi’s services.
An earlier version of this article suggested that you contact Gabi to try out his tools. His service currently only works with insurers in CA and a select few states, and we have revised this proposal since then.