Auto insurance is an investment that protects both you and your family’s safety and financial well-being, yet the amount you pay can depend on a variety of factors ranging from state regulations and driving history to type of vehicle you drive and location. By using an online calculator to better understand how your auto insurance rates are calculated.
Car Insurance Calculator Factors
There are various elements that impact your car insurance rate, with age and driving experience as the two key determinants. Younger drivers tend to pay more due to being seen as higher risks by companies; however, as teens gain more experience behind the wheel their rates start decreasing and middle-aged drivers often enjoy lower premiums than young adults.
Your location is also an important factor, with crime rates and traffic congestion impacting the likelihood of collision. Furthermore, newer, faster or more expensive vehicles often cost more to insure as the insurer must cover potential repair or replacement expenses.
Spending less time driving can also reduce premiums; more driving increases your odds of an accident and increases premium costs. Select a fuel-efficient or safe vehicle, reduce coverage amounts accordingly and stick with minimum state requirements when selecting insurance policies for minimum coverage amounts.
As with other types of coverage, such as comprehensive and collision, certain policies require you to select a deductible amount for them. A higher deductible means less monthly premium payments – however, remember that in the event of a claim it must be covered out-of-pocket by you alone.
Insurance companies will take your credit history into account when calculating car insurance estimates. In many states, insurers use your credit score as a risk indicator; those with poorer scores tend to pay more. If you want to improve your credit, avoid late payments or defaulting on loans in order to build it further.
Finally, marriage and children can affect your rates as well. Married people usually pay less for car insurance than single individuals because having multiple drivers lowers overall risk for companies. Also having college student drivers reduce rates as they’re not on the road as much – The Zebra’s editorial team works independently of any partnerships or commercialization interests so we provide impartial information for your benefit; however for specific advice and assistance we suggest consulting a licensed insurance professional directly. All rights are reserved by The Zebra Inc and powered by WordPress.