How Does Car Insurance Cost Calculator Work?

How Does Car Insurance Cost Calculator Work?

How much car insurance you will pay depends on a variety of factors, including your driving record, the type of vehicle you drive and the level of coverage needed. To get an accurate estimate for your premiums, get a quote from an insurer offering that level of cover.

Quotes will not always be exact and could range anywhere from several hundred dollars to several thousand. Once you get a quote, however, you can shop around to find the lowest rate on your type of coverage from various insurers.

Your Driver History

The more driving violations or accidents on your record, the higher your auto insurance estimates will be. These could include DUIs, speeding tickets and other offenses as well.

Your Credit Score

On average, drivers with better credit scores typically enjoy lower premiums than those with poorer credit ratings. This is because insurers use your credit-based insurance score to estimate how likely you will file a claim if one arises.

Where You Live

Each state sets its own minimum requirements for car insurance, meaning the cost of your policy may differ significantly based on where you live. A basic policy could cost hundreds more in a region with high crime rates, weather-related accidents or an increase in uninsured drivers.

Your Car

Insurers take into account the model of your vehicle when calculating insurance costs. Certain models, such as sports cars or those which are more likely to be stolen, tend to carry higher premiums than others.

Your Car’s Deductible Amount

Raising the deductible amount on your car insurance policy can reduce your annual premium. While it means paying more out-of-pocket in case of an accident, this usually saves money in the long run since only after meeting that deductible will the insurance company have to make a payment for damages.

Your Coverage Components

A comprehensive and collision policy may cost more than a liability-only policy, but it’s essential to have enough protection in the event of an accident. We suggest getting enough coverage to meet your state’s minimum requirements plus any optional features that may be beneficial to you.

Your Policy Management Features

You might want to take into account how convenient managing your policy online or via mobile app will be. This feature could enable you to monitor coverage status or communicate with a claims adjuster, if needed.

Your Car’s Age

The older a vehicle is, the higher its insurance costs will be. Insurers generally charge more for cars over 30 years old as they require more repairs or replacements in case of an accident.

Your Car’s Make and Model

A car with a higher accident history may result in higher insurance premiums. This is because insurance companies assume that drivers with such records will file more claims, so they charge more for coverage.