Car insurance calculators provide estimates for your coverage costs based on factors like location, age and driving history. Each insurance provider uses its own formula for calculating rates; understanding common rating factors will enable you to compare policies more easily and select protection that meets your unique circumstances.
Car You Drive – When setting rates, vehicle type can have a profound impact on premiums. Insurance providers take into account factors like repair and replacement costs as well as theft/vandalism incidence rates to create their rates.
Insurance costs more for fast or expensive vehicles compared to sensible sedans, and insurers will factor in factors like safety ratings and engine size as they compare vehicles’ safety in crashes as well as engine size and fuel efficiency ratings. Certain models can even be considered “high risk,” due to how often they’re driven recklessly.
Location – Drivers who reside in urban areas typically pay higher car insurance premiums due to higher traffic accident, theft and damage rates in these environments. Insurers may also base part of your premium upon local crime statistics as well as whether or not you reside near high-risk intersections.
Your Driving Record – Your insurance premium directly correlates to your driving habits, such as DUI’s or serious traffic offenses. Insurance providers also consider how often and far you drive regularly as factors in their rate calculations.
Other factors affecting car insurance prices include the amount and type of coverage selected as well as life events that could alter your risk profile, such as marriage, moving states or buying a house. Such life changes may require increasing liability limits accordingly and can alter your risk profile and eligibility for certain discounts.
To calculate how much car insurance costs, the best approach is to compare quotes from various providers and use an accurate calculator. Being honest when answering the questions will give you an accurate representation of what the costs may be for your situation. Be sure to include all drivers in your household, avoid falsified information and compare add-ons such as roadside assistance or replacement car coverage as these could significantly raise the bill. Be sure to consider both your credit score and options such as bundling. Finding an affordable policy tailored specifically to your needs should be top of mind; to accomplish this, our free comparison tool offers side-by-side quotes from several top insurers for you to quickly compare. When entering driving record information such as vehicle and location details into the tool, instantly view competing quotes from several top insurers based on these details.