Calculators may give you a general idea of your car insurance costs, but they don’t account for every factor. Therefore, it is vital that you compare quotes from multiple companies as this will show your potential rate and which factors might have the biggest influence.
People use car insurance calculators to gauge whether or not they’re paying too much for coverage. Unfortunately, however, most don’t realize that auto insurance calculators only display an average rate based on your zip code and age; actual premium rates could differ greatly based on several factors including driving history, credit history and amount of coverage chosen.
Younger drivers typically pay more because they are considered higher risks in terms of accidents and tickets. Vehicle type also plays a part; typically faster vehicles cost more to insure. You will usually pay more if you have had a DUI or accident on your driving record and even more if married couples get married; married people typically receive discounts; as for teenagers on policies they typically incur an increase.
Your choice of deductible will have an enormous effect on the price of auto insurance estimates. Selecting a lower deductible typically increases rates as more out-of-pocket expenses must be covered when filing claims; conversely, opting for higher deductibles reduces them significantly.
Car insurance estimates also take into account which company you work with; different insurers offer various discounts depending on your circumstances, so shopping around may pay dividends. Some even reward customer loyalty with special savings!
Consider your insurance needs before comparing quotes. As a guideline, ensure you have enough liability coverage to protect at least half of your net worth; that will provide a buffer between your assets and what might happen in case of an accident or damages claim. NerdWallet recommends carrying at least $300K total bodily injury per person liability coverage and $500,000 of property damage liability protection.
An effective way of estimating how much auto insurance should cost is comparing quotes from multiple providers, making sure each quote compares apples-to-apples by comparing coverage types and limits that are identical in all instances. By doing this, you’ll know you are getting the most cost-effective rate possible for your situation. For more information on car insurance from USAA you may wish to read their article or visit Root’s car insurance calculator where they provide personalized estimates of rates for you based on an analysis of past rates paid out.