Car insurance calculators can be an invaluable asset when shopping around for car insurance coverage options and rates. These tools will give you an approximate idea of the costs related to age, location and driving record criteria that affect car insurance premiums; since each insurance company uses different formulas when estimating policy premiums the estimates you receive may differ significantly.

As a general rule, the more coverage you add to your car insurance policy, the higher your premium will be; this is because insurers must cover increased liability limits set on your policy. Your rate can also vary depending on which deductible type you select; selecting one with lower limits will result in an increased premium while selecting one with higher limits can result in decreased premiums.

Your car’s make and model will also have an effect on its insurance rates, with certain models more likely to be stolen or damaged, leading to higher premiums – this applies especially to sport cars and high-end luxury vehicles with costly repair bills. Zip code and driving record also play an integral part; cities with higher accident, theft or vandalism rates usually see higher car insurance rates than rural regions.

Liability car insurance is mandated in most states, but for additional peace of mind you may wish to consider adding comprehensive and collision coverages as part of your policy. These will help pay for damage to both your own vehicle or another person’s property no matter who was at fault in an accident – however these will incur higher premiums than liability-only policies.

Your credit score can have a dramatic effect on the cost of car insurance rates. Indeed, in many states your credit history is one of the biggest rating factors and could mean getting significantly higher estimates with poor credit than with good.

Once again, it’s important to assess what you’re comfortable spending if an accident does occur. A higher deductible could help lower rates while at the same time requiring you to cover more out-of-pocket.

Car insurance calculators typically display monthly or six-month premium estimates, so it is important to remember that they do not correspond with annual premium rates. However, it should not be difficult to convert these estimates into annual premium rates when shopping around for the best car insurance prices. Mandy Sleight has been working in insurance since 2005 and holds property, casualty, life and health licenses. Previously she served as underwriter/product specialist at one major auto insurer before currently becoming Operations Coordinator of an employee benefits startup company.