Many drivers wonder how much their auto insurance should cost them. Although it is impossible to know the exact cost until receiving a quote, certain general factors that impact pricing include driving history, age and amount of coverage desired – this estimate may change after speaking with an agent or even after submitting your application, such as realizing you need more protection or finding new information regarding your driving history.
Most people believe a car insurance calculator is the ideal way to determine how much their premium should be. While a calculator can give an approximate idea, the exact figure will not become known until after getting a quote from an insurer. Companies consider many factors when calculating rates such as vehicle type and coverage chosen as well as your driving history (tickets/accidents etc) and credit score – sometimes calculators even ask about frequency of use/location since drivers in dense urban environments often pay more.
Typically, as you age and improve your driving record, your rates will decrease. Younger drivers can still incur higher charges if any accidents or DUIs appear on their record; teens also tend to pay higher premiums than their elder counterparts. Furthermore, the more driving you do increases risk which will have an impactful reflection in your car insurance estimates.
Full coverage car insurance costs more, but could save you from costly accidents in the event that they arise. While it will increase costs, full-coverage may help ensure you avoid unexpected bills after an incident has taken place.
Keep in mind that your car insurance rates depend heavily on the deductible you select for your policy. A higher deductible could save money, but may mean paying more out-of-pocket should you need to file a claim.
Insurance companies will use past claims involving specific vehicle models to derive an average price for that car model, as well as repair and theft rates to assess whether or not they pose high risks that must be insured.
Finally, your credit score can have a dramatic effect on your rates. If you have poor credit, quotes could likely be significantly higher compared to someone with average or even good credit due to increased risk being represented in their car insurance estimates.