Survey: How Drivers Are Managing Auto Insurance Premium Increases

Higher-Income Households More Dissatisfied With Cost of Auto Coverage

It sounds a bit counterintuitive, but drivers who make more money are generally less content with their auto insurance costs, according to our survey. Among drivers with an annual household income above $100,000, 15% say they’re dissatisfied with their premiums, versus 9% dissatisfaction among drivers who make less.

Question: How satisfied are you with your current auto insurance premium?

One possible explanation: Those with higher incomes are more likely to drive more expensive vehicles with higher associated repair costs—particularly electric vehicles, which are more popular among households with higher incomes.

Most Drivers Tick Driving Record, Type of Vehicle as Having Greatest Impact on Costs

Overall, most drivers surveyed credited (or blamed) their driving record, the type of vehicle they drive and where they live as having the greatest impact on their auto premiums. The one exception was drivers ages 18 to 24, who cite a major factor besides vehicle type—their age.

They’re not wrong. Their lack of driving experience means younger drivers are generally more costly to insure. Vehicle type, model and age all factor into the premium quote you’ll receive from an insurer. Also, as credit scores tend to be lower for younger drivers, this may also be a bigger factor for younger drivers in states where credit-based insurance scores are used.

Question: What factors do you believe contribute most to the cost of your auto insurance premium? (Top three responses)

Drivers Who Shop for Lower Auto Insurance Premiums Often Switch

When asked if they have recently compared premium rates across insurers, about half said that they’ve looked for alternative coverage in the past year, while the other half didn’t. Among those who did some price and coverage comparison shopping, however, more than 1 in 3 drivers ended up switching insurers.

Question: Have you changed auto insurance carriers within the past 12 months?

Drivers Mostly OK With Devices That Track Driving for Insurance

Although some drivers are averse to having their driving tracked, most surveyed drivers said they’re at least content with having their insurance company monitor their driving, either by their smartphone or with equipment installed in a vehicle’s dashboard.

The enthusiasm, or lack thereof, for monitored driving appears to be age-dependent. Older survey respondents indicated they aren’t as quick to embrace the newish technology as younger drivers. This may be due to the fact that younger drivers are more incentivized to demonstrate their safe driving habits to lower their premium when they renew coverage. It could also be that younger drivers are more eager or willing to accept technology in their driving lives than older U.S. drivers clinging to more romantic notions of the open road.

Question: Do you use an auto insurance tracking device to monitor your driving? How satisfied are you with the results?

Other Popular Ways to Lower Insurance Premiums

Even if shopping for another insurer or having your driving electronically tracked aren’t for you at the moment, there are still other ways to reduce your auto premium costs. The most popular ways to save among drivers we surveyed were:

• Bundle multiple types of insurance with one provider (24% of drivers said they did in the past year)
• Reduce collision coverage on older vehicles they own (15%)
• Increase the deductible in the event of a claim (13%)
• Sell one or more of the vehicles they own (9%)

In most states, improving your credit can be another way to bring down insurance costs. Credit-based insurance scores differ from the scores that lenders use but are based on many of the same factors, including payment history, credit utilization and recent inquiries.