Coffee vs. Car Insurance: What Your Daily Brew Says About Your Buying Habits

There’s something oddly sacred about the morning cup of coffee. It’s not just about caffeine—it’s about ritual. A pause before the chaos. A warm, familiar comfort that quietly says, “You’ve got this.”

Coffee, for many of us, is non-negotiable. We’ll stand in line, pay $6 for a crafted cup of frothy perfection, and never question the price. We subscribe to beans, invest in grinders, experiment with oat milk and syrups, and share our morning fix on social media.

Meanwhile, car insurance? That’s the thing we try to spend less on, avoid thinking about, and grumble over when the bill comes due.

And here’s the irony: many Americans spend more money on coffee each year than they do on auto insurance.

The Spending Gap That No One Talks About

Let’s look at the numbers. According to Perfect Brew and other recent surveys, men spend roughly $1,900 per year on coffee. Women, on average, spend closer to $2,300. That’s around $5 to $7 per day without even blinking.

In contrast, the average annual cost of car insurance in the United States is about $1,700. Of course, that varies by state, driving history, and vehicle—but for the sake of comparison, let’s just sit with that: you’re more likely to spend more on a hot beverage than on protecting your car, your finances, and yourself.

We don’t blink at the $6 latte. But we’ll shop three different websites to save $8 a month on car insurance.

Why?

Because one feels like a treat. The other feels like a tax.

The Power of Perception: Coffee’s Glow-Up

Not long ago, coffee was utilitarian. A dollar at the diner. A stale pot in the office breakroom. Something you drank for function, not feeling.

Then came Starbucks.

They didn’t just serve coffee—they sold an identity. A vibe. A lifestyle. Your cup had your name on it (misspelled, usually). The music was curated. The smells, the lighting, the menu—all designed to elevate something ordinary into something aspirational.

What Starbucks understood—and what insurance marketers largely forgot—is that a product doesn’t have to change to become more valuable. Only the story does.

The Opposite of Sexy: Insurance Marketing in a Price-Only World

Car insurance, by contrast, has spent the last two decades backing itself into a corner. We’ve turned it into a race to the bottom.

“Save 15% in 15 minutes.” “Name your price.” “Bundle and save.”

Sure, those lines move product. But they also train consumers to see insurance as nothing more than a price tag.

Once that happens, the real value—guidance, protection, service—gets completely overlooked. Insurance becomes a commodity, no different than gasoline or bananas. When we get to this point, price is the only thing left to talk about.

That’s great when everything goes right. But when it doesn’t—when there’s an accident, a claim, an emergency—you start to realize the gap between a good policy and a cheap one is very, very real.

What Happens When You Actually Use It

Coffee gives you a hit of dopamine. Insurance gives you something much quieter: stability. Continuity. Peace of mind.

It’s not until your car is totaled, or someone rear-ends you and doesn’t have enough coverage, or your insurer fights for you in a messy claim, that you realize what you actually paid for.

In those moments, the price you paid—or didn’t pay—becomes very real.

Unlike your morning brew, you can’t just pour a bad policy down the drain and order another. There’s no refund. No do-over. And definitely no customer rewards punch card for loyalty.

So, What Does This Mean for Consumers?

We’re not suggesting you stop drinking coffee. Honestly, we wouldn’t dream of it.

But it’s worth pausing to think about how easily we justify small, frequent expenses that bring us momentary joy—and how reluctant we are to invest in things that provide long-term security.

The Latte Factor—a phrase coined by David Bach—was originally about cutting back on small indulgences and redirecting that money toward long-term wealth. That may work for some.

But maybe it’s not about cutting coffee. Maybe it’s about reframing value.

Instead of seeing insurance as an expense you tolerate, consider it an investment in your lifestyle. In your future. In your ability to bounce back when things go wrong.

What This Means for Agents, Too

There’s a lesson here for insurance agents as well.

Coffee became a premium product through branding and experience. Insurance can follow the same playbook—if we stop trying to compete with discount slogans and start telling better stories.

We have the advantage: we’re offering something people actually need. We just need to help them want it, too.

That starts by ditching the script and reconnecting with the human side of the product.

Because when done right, insurance isn’t a bill—it’s a service. A relationship. A safety net. And if we help people understand that, they’ll value it the same way they value their perfectly steamed latte.

So What’s the Takeaway?

Let’s bring it full circle.

You wouldn’t drive 10 miles out of your way to save 30 cents on a cup of coffee. But plenty of people switch insurance carriers to save $5 a month—often without understanding what they’re giving up.

There’s nothing wrong with saving money. But there’s something flawed about chasing discounts on things that are designed to protect you.

The next time you’re sipping your morning brew, take a moment to think: when was the last time you really looked at your insurance? Do you understand what it covers? Do you have an agent you trust? Do you even know who your carrier is?

If not, maybe it’s time for a fresh pour.

Need help brewing a smarter insurance strategy?

At IronPoint Insurance Services, we believe insurance isn’t about slogans or savings gimmicks—it’s about making sure you’re protected when it counts. And we’re here to help you do just that.

Get in touch. Let’s talk about what really matters.

Caramel drizzle is optional.