No matter if you’re looking for auto insurance to protect a new purchase or simply wondering about adding an additional driver on an existing policy, knowing the elements that go into pricing it’s beneficial. Although it’s impossible to predict exactly what your rate will be until an insurer provides a quote and gives an exact figure – knowing some common rating criteria may help explain their formula as well as see how prices vary across states and providers.

Important factors that influence your rate include your age, location and car type. Some are universal while others vary by state. Insurance providers take your age into consideration because younger drivers tend to need medical services less often or be involved in accidents – which in turn reduces premiums.

Where you live can have a significant influence on your rates, as crime and accident statistics vary across regions. Furthermore, your vehicle plays a factor – more expensive cars are typically more costly to insure.

Your driving history can also play a key role in your insurance premiums. A DUI conviction or at-fault accident could increase your rates, while having a stellar record can lower them and save money in premium costs.

Your driving time can have an effect on your insurance rates, since more driving can increase your odds of an accident or vehicle damage. Finally, credit score can play an integral role in determining how much insurance costs; many insurers use your history when calculating risk.

As well as these factors, you’ll also need to select a coverage level and decide on an amount for the deductible payment per claim. The higher this deductible amount is set at, the lower will be your insurance rates; popular coverage types for car policies include liability, collision and comprehensive.

Once you know the type of coverage and deductible that best suit your needs, using an online calculator to estimate your monthly rate can be straightforward and painless. These calculators make the task effortless as they use information such as age, home address and vehicle make and model to give an approximate cost estimate based on personal details such as your age and address as well as vehicle year make and model information to produce quotes that best meet your budget needs. By spending some time comparing rates before purchasing coverage you could save hundreds annually by finding the appropriate policy!