No, insurance companies don’t all charge the same rate, which is why comparing rates from different companies is one of the best ways to save money on car insurance. While companies consider many of the same factors when determining premiums, insurers assess the information differently and have different business models. Car insurance companies also have different operating costs which may contribute to their decision to charge higher or lower rates than competitors.
Average Rates Charged by Major Car Insurance Companies
| Company | Minimum Coverage | Full Coverage |
| $1,033 per year | $4,041 per year | |
| $1,262 per year | $3,666 per year | |
| $796 per year | $2,886 per year | |
| $1,032 per year | $3,514 per year | |
| $807 per year | $2,802 per year |
Note: Annual premiums are representative of a 45-year-old male driver in California with a clean driving record. Individual premiums may vary.
Insurance companies also offer different discounts, and you may be able to get a better rate by switching to a company that offers discounts that apply specifically to you.
How Company Structure Affects Rates
An insurance company’s business model can have an impact on the rates that it charges. Some insurance companies, like Geico and Progressive, are publicly traded companies owned by shareholders seeking a return on investment. Others, like Mutual of Omaha and Liberty Mutual, are owned by their policyholders. Companies owned by their members tend to pay out more claims and are not as likely to raise their premiums as quickly as publicly traded companies.
There are more factors to consider than just pricing when looking for car insurance, including differences in policy options, claim satisfaction rates, customer service policies, and reviews. You can compare what different insurance companies have to offer using WalletHub’s car insurance comparison tool.
This answer was first published on 05/12/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
