How to Estimate Car Insurance Rates for Your Car?

February 13, 2024

According to Business Wire, auto insurance rates for Americans will average $1895 by the end of 2023. However, it is important to understand that each insurance company calculates insurance rates individually for each policyholder, raising a question: How do I estimate my car insurance correctly? In this article, we’ll cover everything you need to know about car insurance estimate and premiums. We’ll also give you insights into how to save money and pick a policy that reflects your real needs.

How to Calculate Auto Insurance Costs?

To estimate insurance for a car, you need to study the factors that influence the cost. You can also use an online calculator. You do not need to enter personal information; just general info. You may need to indicate:

  • Place of residence
  • Age
  • Driving history
  • Car type and year of manufacture
  • Desired liability coverage

Note that a car insurance estimate without personal information gives only approximate results. Although most resources offer a free car insurance estimate calculator so you can calculate an approximate amount yourself, you must contact a knowledgeable insurance agent for an accurate estimate.

Factors Influencing the Your Car Insurance Estimate

  • Age. Premiums may be higher for inexperienced drivers, which are usually U-25 drivers, for they pose a higher risk to insurance companies. Likewise, senior drivers are generally charged more because of the increased risk of being involved in an accident.
  • Marital status. Some agencies may suggest including your spouse in your policy, granting you a lower car insurance estimate if your spouse’s driving record is clean. A study in New Zealand showed that single drivers are twice as likely to get into an accident as married drivers.
  • Place of residence. Overpopulated states and states with a high road accident and crime rates usually charge more for auto insurance policies. On the other hand, you can lower your car insurance estimate by moving to a safer or less dense location.
  • Driving history. If you have a record of traffic violations, you will be charged a higher estimate for car insurance. The same goes for people who are new to driving. Experienced drivers with a clean driving record can expect discounts on their policy.
  • Credit rating. Insurers may ask you for information about your credit rating. If you pay your bills on time and have no debts, it may lower your estimate for car insurance.
  • History of claims. An auto insurance estimator may pay attention to your experience with your previous insurance companies. You will likely be denied a lower rate if you have had late payments or renewals. Conversely, if you have always paid your premiums on time, then the agency may be willing to cut the premium.
  • Car model and make. The higher the cost of your vehicle, the higher your car insurance estimate. Exclusive and sports cars also cost more because of a higher accident risk.

Why Are Some Vehicles More Expensive to Insure?

High car insurance estimate of some types of vehicles is caused by the following reasons:

  • Car price. Restoring or replacing an expensive car will require significant spending on the insurer’s side, leading to higher insurance rates.
  • Car parts. Some car models have expensive parts that are difficult to replace, increasing the car insurance repair estimate.
  • Car speed. Sports cars are faster and more powerful, which increases the potential risk of getting into an accident.
  • Theft risk. Cars popular with car thieves pose higher insurance risks and are thus more expensive to insure. According to a Hot Wheels report from the National Crime Bureau (NICB), Chevrolet and Ford pickup trucks and the Honda Civic are among the most wanted cars by carjackers.

How to Estimate Car Insurance Rates for Your Car 6 Source: NICB You may also need additional insurance policies like comprehensive and collision coverage if you have an expensive car.

How Much Auto Insurance Do You Really Need?

When seeking a policy for a newly purchased car, consider the minimum mandatory amounts. The most commonly offered rate is 25/50/25:

  • $25 000 in bodily injury liability
  • $50,000 in bodily injury liability
  • $25,000 in property damage liability

That said, the mandatory coverage limits vary by the state. For example, Florida car insurance estimate is $1,128 for minimum coverage and $3,183 for full coverage, providing $10,000 in property damage liability and $10,000 in personal injury protection (PIP). If you want to protect yourself from any trouble with your car, you need comprehensive coverage, which usually includes several types of mandatory and optional policies.

How and How Much Can I Save On Auto Insurance?

Your car insurance estimate will give you an approximate amount, with several options to save:

  • Compare offers from different companies. Remember that each agency puts forward its own conditions for the insured, including the pricing policy. For example, the Geico car insurance estimate is considered one of the lowest in the United States for high-risk drivers.
  • Learn about discounts. When it comes to auto insurance discounts, the world is your oyster. For example, if you are a careful driver, you may be offered a lower rate, and so on. Almost every driver can lower their insurance premium if they put enough effort into researching the right provider and policy.
  • Take advantage of “bulk” offers. For married policyholders, some agencies offer special insurance plans, lowering your car insurance estimate. Likewise, many auto insurance providers offer lower insurance rates if you combine several policies like home and auto insurance or unite several vehicles under the same policy.
  • Increase the deductible. A deductible is the amount you pay out of pocket before your insurance provider kicks in to pay the rest. Naturally, the higher the deductible, the lower the premium. According to Forbes Advisor, drivers can save an average of 7% to 28% annually by increasing their deductible.

How to Estimate Car Insurance Rates for Your Car 5 (Source: Forbes Advisor)

Comparison of Car Insurance Rates

Given the abundance of insurers and policies in the market, you may have difficulty choosing the right insurance. Let’s look at the key points you need to compare rates to get an accurate car insurance estimate:

  • Vehicle. The more expensive your vehicle, the higher the premium.

Check out the average rates assigned to drivers of popular car makes and models: How to Estimate Car Insurance Rates for Your Car 2 (Source: Forbes Advisor)

  • Insurance companies. Popular companies like Geico and State Farm offer competitive car insurance estimates for experienced drivers.

How to Estimate Car Insurance Rates for Your Car 4 (Source: USNews) You should also check the rates of other agencies and specific conditions for providing auto insurance. For example, USAA offers its services exclusively to the military and their families.

  • Driver’s age and gender. The younger and less inexperienced the driver, the higher the car insurance rates estimate.
Age Female Male
16-18 $6,408 $7,188
19-24 $3,100 $3,536
25-35 $1,870 $1,964
36-39 $1,651 $1,651
40-44 $1,614 $1,607
45-49 $1,586 $1,579
50-54 $1,512 $1,517
55-59 $1,465 $1,465
60-64 $1,454 $1,468
65-69 $1,489 $1,513
70-74 $1,573 $1,608
75-79 $1,712 $1,780
80 and over $1,880 $1,997

According to the U.S. Department of Transportation’s Fatality Analysis Reporting System (FARS), men were twice as likely to be fatally injured in crashes than women. In most states, women tend to pay lower premiums. How to Estimate Car Insurance Rates for Your Car 3 (Source: FARS) Note that six states (North Carolina, Pennsylvania, California, Massachusetts, Michigan, and Hawaii) prohibit gender as a car insurance quote estimate factor.

What Exactly Is Full Coverage Auto Insurance?

Full coverage is a term that means getting more than one policy at a time. Usually, it includes three types of coverage:

If you want a comprehensive car insurance ballpark estimate, you need to determine what types of insurance you might need in addition to the mandatory ones. Note that no state requires comprehensive insurance.

Car Insurance at a Low Cost

For the best car insurance estimate, browse through as many offers as you can and use auto insurance calculators that many insurers offer on their websites. And if you need help, make sure to consult with an appropriate agent. Consider the following advice to cut your car insurance rate:

  • Choose a car model advantageous for insurance
  • Bundle your home and auto insurance policies
  • Opt for the necessary coverage only
  • Increase your deductible

If you’re having trouble choosing a plan, contact a professional insurer. They can thoroughly analyze your circumstances and needs and give you a more accurate estimate of car insurance costs.

FAQ

What are the main factors influencing my car insurance rate?

Insurance estimate car depends on the make and model of your car, mileage, claim history, age, place of residence, deductible, other policies, and credit rating.

What is full coverage car insurance?

Full coverage is a set of several policies that provide comprehensive protection for your car. Traditionally, it consists of comprehensive coverage, liability insurance, and collision insurance. Note that the need for comprehensive coverage also affects the car insurance estimate.

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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