Car insurance is a must, yet calculating how much it’ll cost each month can be daunting. Car insurance estimators provide some estimates, but keep in mind these are simply educated guesses based on factors like your location and coverage choice.

Driving records play the most obvious role, with accidents and traffic violations increasing rates while avoidance can lower them. Your credit rating also has an effect on rates; to improve it, pay down outstanding debts and credit card balances as soon as possible to improve it further. Some drivers can save even more by purchasing both home and auto policies with one provider to access discounts of up to 20% according to NerdWallet.

Insurance providers consider many criteria when creating policies. Some may offer local or regional discounts, while others provide national discounts across several states. When shopping around for policies it’s essential to compare costs as cheap doesn’t always equal quality; focus on finding companies with excellent customer service instead of cheap insurers.

Apart from calculating how much liability coverage is required of you by state laws, take note of collision and comprehensive policies – they’ll cover repair or replacement in case of damage or theft to your vehicle, often necessary if taking out loans to purchase one – when creating your estimate.