Using a Car Insurance Calculator

When purchasing car insurance, knowing how to estimate its costs is of vital importance. A calculator is an effective way of providing an approximate figure that allows you to compare different policies. But keep in mind that the final quote from insurer may differ due to different factors that determine premium calculations.

Your car and state of residence also affect how much car insurance costs. For instance, owning a $30,000 sports car could increase your premiums significantly more than owning an older sedan with lower value.

If you are uncertain as to the value of your car, obtain an auto valuation before shopping for insurance policies. This will give you an idea of what could happen if it is stolen or totaled and can help set realistic expectations regarding potential payouts in case something were to happen to it.

Your deductible also plays a pivotal role in how much car insurance will cost you. A higher deductible can reduce premiums; however, choosing one if you’re young could put you at greater risk and could end up costing more later if an accident occurs.

Other factors affecting car insurance costs may include your age, marital status and location. Furthermore, some states mandate carrying certain amounts of bodily injury and property damage liability coverage.

Insurance providers also consider your number of claims and driving history when setting rates, according to NerdWallet. If your driving record is impeccable and no claims have been filed within the last year or two, your rates will likely be more affordable.

NerdWallet reports that marital status can have an effect on premiums. On average, married people tend to be less risky drivers than single ones; insurers also take age into consideration; young drivers typically enjoy lower premiums.

As new or used cars are more likely to cause accidents, purchasing one will raise your insurance costs significantly. To lower these expenses and limit financial risk, ensure you purchase enough collision and comprehensive coverage.

NerdWallet notes that retail price can have a dramatic effect on car insurance costs, particularly for higher-end models featuring costly parts made of carbon fiber or other specialized materials that could increase replacement costs in case of an accident.

NerdWallet advises consumers purchasing used vehicles from reputable dealerships in order to prevent being taken advantage of. An established dealership will be able to answer your queries and may even offer discounts for drivers with excellent driving records.

Your state of residence can have an effect on your premiums, according to NerdWallet. Living in an urban area will increase the cost of insurance while rural or suburban communities offer significant cost savings owing to less traffic congestion, accidents, vandalism and fraudulent claims.