How to Calculate Car Insurance Rates

Car insurance estimates can help drivers budget, plan, and select coverages more easily. But what factors go into an estimate’s calculation? Insurance companies use various rating factors such as your age and driving record to estimate premium costs – some more obvious such as these being taken into consideration than others (like vehicle make/model or whether your policy offers full or minimum coverage). When searching for new vehicles or seeking better rates, understanding how to calculate car insurance rates will give you a clearer sense of your options and any factors influencing them.

Insurance companies take into account your state and ZIP code when setting rates. They use accident statistics such as theft and vandalism incidents as a basis for setting premiums in certain locations versus others; average costs to repair vehicles as well as risks posed by weather events also play a part.

Personal information such as your age, gender and marital status all play an impactful role in determining your insurance rates. Younger drivers usually pay more, as do those who have prior traffic violations or DUIs on their record. Married couples tend to receive lower car insurance rates than single people while having good credit can sometimes save you money when purchasing auto coverage. Furthermore, you should select an appropriate deductible as well as coverage types and limits that meet your family needs.

Insurance providers take your vehicle’s make and model into consideration when setting rates. If it is popular among thieves or at risk of damage due to accidents, that may cause your premiums to increase significantly. Safety ratings and engine size also can have an impact on its insurance costs.

Multiple factors impact your car insurance deductible and premium costs; choosing higher coverage limits or comprehensive policies will drive up premium costs, but ensure you’re covered should an accident occur or something costly occur.

The average national annual car insurance cost ranges between $740 for minimum coverage and $2,542 for full coverage; this figure should only be used as a guideline as individual premiums will likely differ. Know Your Car Insurance Rates To Customize Policies If you want an estimate of car insurance rates for free, compare quotes from multiple car insurers. To do this. Use The Zebra’s car insurance calculator above to estimate your rate and see how much money you could potentially save by comparing prices and policy options. Be sure to review your policy annually, to make sure you’re paying an acceptable price for coverage; and if you have any queries or need help speaking to an independent insurance agent. They are always happy to assist!