Car Insurance Calculator: Estimate Your Coverage Costs

Car insurance rates are linked to individual policyholders’ unique needs and risk profile. Even drivers with similar driving records may be quoted different rates by the same company. To get an idea of how much you should expect to pay for your desired coverage levels, use Insurify’s car insurance calculator.

How to Estimate Auto Insurance Costs Before Buying a Car

Savvy car shoppers don’t just compare the price and features of their prospective vehicles. They also estimate how much car insurance will cost for the new car.

First, you need to narrow down your choices to your top three to five contenders. Then, decide how much coverage you need. That means deciding your coverage limits for:

• Bodily injury liability protection

• Property damage liability protection

• Underinsured and uninsured motorist coverage

• Medical payments or personal injury protection (PIP)

• Collision coverage

• Comprehensive coverage

• Gap coverage, if applicable

Lastly, you plug this information into the Insurify rate-comparison tool. Simply enter the vehicle information to receive real quotes based on your driving profile and the car.

Deciding Your Coverage Needs

Drivers in almost every state must meet car insurance minimums to drive legally. But state minimum is not enough coverage for most people. You need enough car insurance to cover:

• The cost of medical care after an accident

• The cost of repairing or replacing your car

• The cost of losses that result from an uninsured or underinsured driver

Your minimum coverage needs depend on the value of your car and the number of passengers usually with you. A newer, more valuable car requires higher coverage limits, as the cost to replace the car is high. If you drive with passengers, you should purchase higher medical payments coverage because the risk of paying large medical bills is higher.

How Car Type Affects Rates

There are four main factors that determine the base cost of insurance for the make and model of a vehicle type.

Value: How much the car is worth and whether the car is a base model or luxury model.

Engine size: Cars with larger engines indicate a driver who wants to drive fast. That sends a risk signal to insurance companies.

Repair costs: Some cars, even ones with modest price tags, are more expensive to repair. They may have specialized auto parts that aren’t easily replaced or unique features that require car mechanics with specialized knowledge.

Theft rate: Some cars are very popular amongst car thieves, while other cars are hardly touched. For this reason, cars with higher theft rates tend to be more expensive than cars with lower theft rates.

Other Factors That Affect Car Insurance Quotes

What your car insurance cost boils down to is how big a risk you pose to the company. In other words, how likely are you to be the cause of a costly insurance claim payout. Insurance companies avoid payouts, as these are losses. To reduce losses, they collect higher premiums from drivers who pose a higher risk.

But car insurance companies look at more than the cost of your vehicle to determine risk. They also consider a driver’s:

Demographics: Drivers under 25 tend to pay the highest premiums. Costs begin to decline after 25, steadily decreasing until drivers reach their 70s or 80s. Women tend to pay less than men, but in some states, companies are forbidden from using gender as a rating factor.

Driving record: People with clean driving records pay much less than those who have multiple infractions.

Marital status: Married people are considered lower-risk drivers than singles.

Credit history: People with good credit pay less than people with bad credit. People with excellent credit scores pay the least.

Coverage types: Whether you need liability coverage, full coverage, or additional coverage options.

State requirements: Some states require more insurance than others. Massachusetts, for example, requires several coverage options beyond liability insurance.

Location: Some areas have higher average costs for car insurance. Consider cost differences between cities and small towns in California.

Coverage limits: How much coverage you need for each type of coverage.
Deductible level: People with higher deductibles on their policies pay less than people with lower deductibles. Just be sure your deductible is set to a level you can afford in the event of a claim.

6 Steps for Cheaper Car Insurance

While many factors that influence the cost of car insurance are out of your hands, there are six strategies any driver can use to lower (or drastically lower) their rate.

1. Compare car insurance rates at least every six months.

   Auto insurance companies change how they assess risk and prices all the time. Building comparison-shopping into your financial routine is a great way to save.

2. Take advantage of discounts, as many as you can.

   People with the cheapest car insurance policies are taking advantage of steep discounts. Ask your insurance agent about any discounts you might have missed.

3. Choose a cheaper vehicle and raise deductibles.

   If you have teen drivers, it’s a good idea to limit their vehicle use to one that’s paid off and cheaper to insure. To save even more, you can drop optional coverage, like collision, and even lower some of the coverage amounts based on the car’s usage.

4. Maintain or build a good credit score.

   Your credit score can make things easier and cheaper or harder and more expensive. While correcting a lower score may take some time, it’s possible for anyone to have better credit.

5. Improve your driving record or maintain a good record.

   A single car accident or DUI can as much as triple your car insurance rate. Several speeding tickets can also increase your rate by a lot. People with clean records pay less and get access to more discounts.

6. Bundle auto insurance with home insurance.

   Homeowners get the best discount when they bundle their insurance products. Many companies also allow bundling with other types of insurance, like renters insurance.

Combining all six strategies can save you hundreds every year on car insurance premiums.

The Best Way to Get Auto Insurance Quotes

Back in the day, you needed to go to each individual insurer to get an estimate for your car insurance. Now, you can use simple technology to get real quotes in minutes. 

Compare quotes from top insurance companies for free.

Frequently Asked Questions