How to Calculate Car Insurance Rates

How to Calculate Car Insurance Rates

Car insurance rates depend on many variables and can differ considerably between insurers, though certain common criteria used to assess estimates include age, driving record and credit history – as well as what coverages you choose – all which play a part. Our MoneyGeek calculator can help you assess which plans best suit your budget and lifestyle needs.

Your state laws and insurance requirements will have an impactful impact on your car insurance premiums, since minimum coverage levels vary widely between states. Your location also plays an important role as urban areas typically experience more accident claims and theft than more rural regions.

Your record of traffic accidents and citations will have an effect on the car insurance estimates you receive, with most insurance providers only offering policies to drivers with clean driving records; how long citations remain on records depends upon state law.

Your vehicle model can have a significant effect on its insurance rates; some models are more susceptible to theft or collisions than others; this is particularly true of sports cars which typically carry higher insurance premiums than their counterparts.

Insurance providers also take into account your gender, age and marital status when providing car insurance estimates. Certain demographics tend to present greater risk than others and insurers strive to offer policies with competitive premiums for them all.

Insurers use your credit history to assess how much of a risk you pose as a customer, since drivers with poor credit tend to file more insurance claims than their counterparts with good credit – which in turn causes everyone’s premiums to increase. Some states prohibit insurers from considering your credit score when setting your rates; it would be wise to check with them directly regarding this policy in your state.

Your choice and amount of car insurance coverage will also have an effect on your estimate, with certain policies costing more than others. Liability coverage – which is required in many states – helps cover injuries or damages sustained from an accident you cause while collision and comprehensive cover protect your vehicle if an incident arises like collision or theft.

Your choice of deductible can also have a major effect on your auto insurance estimates; this amount must be paid out-of-pocket before your coverage takes effect and should increase with each increase of deductible chosen. Our MoneyGeek car insurance calculator enables you to alter this factor to see how it impacts rates; additionally, this tool shows which companies provide discounts that fit best for you and can show which discounts may apply in particular situations.