NerdWallet: Drivers Could Overpay $4,914 Annually

A June 2026 NerdWallet analysis estimated that U.S. drivers could overpay an average of $4,914 annually by not comparing auto insurance carriers, even when insuring the same car with the same coverage. Auto insurance prices vary with factors including driving and claims history, age and experience, credit-based insurance scores in many states, and location, and insurers weigh those factors differently. After insurance costs surged in 2024, 57% of U.S. auto customers shopped for a new policy that year, a record in J.D. Power’s 19-year study. Drivers should compare quotes as well as coverage and policy terms, since choosing solely by the lowest premium can leave them exposed to high deductibles, exclusions or claim denials, particularly if they misunderstand policy questions or coverage limits.