On average, full coverage car insurance in the U.S. costs about $2,680 a year (that's $223 a month.) But for minimum coverage, that average drops to around $802 a year ($67 a month), according to Bankrate.

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Keep in mind, those are just averages. Your premiums could be a lot lower (or higher) depending on where you live, what you drive, your driving history, and more.

So how do you know if you're overpaying? Here's what to know and how to check.

How do you compare to the national average?

I'll go first. My full coverage premium right now is $1,047 per year. I live in California, have an excellent credit score, drive a minivan (dad mode), and only drive about 6,000 miles a year.

I pay less than half the national average for car insurance. But it didn't happen by accident. I keep a clean driving record and credit profile, and I shop around rates pretty often.

And trust me -- shopping around once in a while really pays off. Here's a free tool to compare rates from the top insurance companies.

You could save hundreds, just by checking what's out there.

What affects your car insurance rate?

There's a long list of factors that impact your auto insurance premium. Some of them you can control, and others you can't.

Here are the big ones insurers look at:

• Your location: Rates vary dramatically by state and even ZIP code. Michigan drivers, for example, pay more than twice as much as people in Vermont.
• Driving record: Accidents, speeding tickets, or DUIs can spike your rate for years.
• Vehicle type: Minivans and sedans are typically cheaper to insure than sports cars or luxury vehicles.
• Credit score: In most states, a higher credit score means a lower insurance premium.
• Annual mileage: Less time on the road usually equals lower risk (and cheaper coverage).
• Coverage level: Full coverage costs more than minimum coverage, but it offers far better protection.
• Deductible amount: Choosing a higher deductible can lower your premium.

I know, that's a lot to keep track of. But understanding the dials you can turn gives you the best shot at lowering your rate.

It pays to shop around

Consumer Reports recently found that 30% of car owners switched insurers in the last five years, and the median savings for those who did was $461 per year.

Here's the thing, though: You can't just sit around and wait for a discount.

If you want a lower premium, you've got to ask for it. And the only way to save is by shopping around and getting new quotes.

Personally, I shop around at least once a year. More often than not, I confirm that I already have the best deal for me. And it makes me feel good knowing I'm not overpaying.

But then there are times when I save a bunch of money for the exact same policy!

Bottom line: Don't wait for your renewal date. Check out this free tool to compare rates from the top insurance companies. It only takes a few minutes, and you could save hundreds!

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Did you know it's possible to have "too much" car insurance?

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Many drivers pay more for car insurance than necessary because their coverage exceeds their needs. In fact, having more coverage than you need could be costing you several hundred dollars per year.

Here are three red flags to help you spot if you're overinsured -- and how to fix it.

1. You have coverage you don't need

Not all auto insurance coverages make sense for every driver.

For example, if you own an older vehicle with a low resale value, comprehensive and collision coverage might cost more than your car is worth. In that case, dropping these optional coverages can lower your premiums without much risk.

On average, U.S. drivers pay $421 per year for comprehensive coverage and $743 per year for collision coverage, according to Insurance.com. If you get in an accident, you've also got the deductible to cover, which means you could end up paying more out of pocket than the car is worth.

If you already pay for roadside assistance through services like AAA or your phone provider, you may be doubling up by having it included in your car insurance. You might also be paying for rental reimbursement coverage, which isn't necessary if you have a backup vehicle and won't need a loaner while your other car is getting fixed or replaced.

It's smart to regularly review your policy to cut coverages that don't fit your situation.

You might be able to save hundreds of dollars per year just by switching your car insurance -- and it only takes a few minutes to find out. Check out this free tool to compare rates from the top insurance companies.

2. You have overlapping or duplicate policies

Sometimes people unknowingly pay twice for the same protection. This happens if you have multiple insurance policies that cover the same risks, or if you have duplicate coverage already included in another policy.

For instance, you might have rental car reimbursement in both your auto and homeowners insurance. An easy way to save money is to to track all your insurance products to avoid paying twice for the same coverage.

3. Your deductible is too low

Your deductible is the amount you pay out of pocket before insurance kicks in. Choosing a very low deductible, therefore, usually means a higher premium (your monthly payment).

If you're a safe driver and have enough savings to cover a bigger chunk of an accident, increasing your auto insurance deductible can lower your monthly or yearly premium significantly.

That means you'll be reducing your insurance costs while still providing solid protection. If you've got a decent driving record and are looking to save a little, raising your deductible (and decreasing your premium) could be a smart move.

Review your policy and save today

Having the right amount of car insurance coverage means balancing risk with upfront cost.

The best ways to save on car insurance include avoiding paying for unnecessary coverages, overlapping policies, and low deductibles that drive up premiums. It's smart to review your insurance regularly and adjust it to fit your current needs and financial situation.

Want to save on your car insurance today? Check out this free tool to compare rates from the top insurance companies.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Almost every state requires drivers to have auto insurance that covers both injuries and property damage that they cause in an accident. But the state minimum is usually far too low. Many states only require about $75,000 in total coverage.

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That may sound like a lot, but imagine you get into an accident where cars are totaled and multiple people are injured. You could be responsible for hundreds of thousands of dollars in medical bills and property damage -- even if you live in a no-fault state.

I'll show you why the minimum is not enough, as well as what sort of coverage can protect you from a financial disaster.

State minimum car insurance: A quick overview

Every state requires two types of coverage:

• Personal injury liability. This covers injuries you cause to other people in an accident. There's a per-person limit and a per-accident limit on your coverage.
• Property damage liability. This covers damage you cause to someone else's property (namely, their vehicle).

The minimum dollar amount of coverage varies from state to state.

Most no-fault states also require personal injury protection (PIP). When a driver is injured in an accident, their own PIP is tapped first to pay for medical bills, lost wages, and other injury-related expenses. Once PIP is used up, any remaining costs are paid for by the at-fault driver's liability insurance -- and then, potentially, by the at-fault driver.

Why the minimum is not enough

Let's say you live in a no-fault state, and your auto insurance includes:

• $10,000 in personal injury protection
• $25,000 per person in bodily injury liability insurance
• $25,000 in property damage liability insurance

Now let's say you get into a major accident with a vehicle containing two people. Both cars are totaled, and everyone is taken to the hospital for serious injuries. You're found to be at fault.

For starters, your insurer won't pay to replace your vehicle. And if you use up your personal injury protection, you'll have to pay out of pocket for additional medical costs that aren't covered by your health insurance.

The medical costs of the other car's passengers could easily exceed $100,000 (and in some cases could climb above $1 million). And the average cost of a new car today is nearly $50,000.

Depending on the auto and health insurance of the other people involved, your insurance could fall short by $50,000, $100,000, or even more. And you could be sued for the remaining costs, as well as for emotional distress.

What coverage should you have instead?

Here's a good starting point for auto insurance that actually protects you.

Bodily injury liability: $100,000 per person, $300,000 per accident

• This offers much more protection in case multiple people are seriously injured.

Property damage liability: $100,000

• That's usually enough to cover damage to multiple cars, as well as buildings, fences, and more.

Uninsured/underinsured motorist coverage: $100,000 per person, $300,000 per accident

• This coverage pays you if another driver causes an accident and doesn't have enough insurance.
• Important because many drivers carry minimum insurance -- or none at all.
• Some states require this coverage, but the minimums are too low to offer much protection.

Collision and comprehensive coverage

• This covers damage to your car, whether from an accident, theft, fire, or weather.
• Especially important if you drive a new or valuable vehicle.

And if you don't have health insurance, look into personal injury protection. Note: In some states PIP is required, in some it's optional, and in some it's not available at all.

How much more does good car insurance cost?

This depends on a lot of factors, like where you live, your driving history, your credit score, your vehicle, and more. "Full" coverage may cost you several hundred dollars more per year than minimum coverage -- or it may not.

Either way, the best car insurance policy could end up saving you way more than you pay. You'll also sleep better at night -- and feel more relaxed behind the wheel -- if you know that a single accident won't wreck your car and your finances.

The good news is that the top auto insurance companies offer great coverage and low premiums. Click here to compare quotes from top carriers and find the coverage you need at a rate you can afford.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

The health insurance giant is notifying at least 4.7 million patients of the security lapse.