Tips To Calculate How Much Your Car Insurance Will Cost

Whether you’re driving a sleek and speedy convertible or loading up the van to get the kids to practice, auto insurance is important for any car owner to have. However, all auto insurance policies are not one-size-fits-all and have many factors that go into determining the car insurance rates that are available to you and those on your coverage. Here are a few things to keep in mind as you explore your insurance options to calculate just how much your monthly premium should be.

Consider where you live and the amount of coverage.


When trying to calculate how much your car insurance will cost, most insurers will start with determining your location and where you drive and park. By entering a ZIP code through a search engine, you’ll be able to see what car insurance companies are offering on average in your area. A more rural area is likely to have a lower rate due to limits on traffic and the lesser likelihood of a collision or another incident on a busy street.

Auto insurance rates are also impacted by how much coverage you are purchasing. Across the U.S., each state has its own minimum requirements for liability limits to allow you to get behind the wheel. This is usually a third-party policy that only covers injuries to those who were involved in a car accident with you. As you branch out into more comprehensive coverage, the rates will go higher but will vary based on an insurance carrier and on the terms and conditions and exclusions of a policy.

Consider your driving and claims history.


One of the greatest factors into how much a car insurance policy costs is a driver’s history behind the wheel. For example, younger drivers are considered higher-risk due to a lack of experience, so their auto rates are higher than a more experienced person’s. Older drivers are also considered high-risk due to concerns about their capabilities while driving. There are, however, discounts that may be offered to curb a higher premium such as good grades for younger student drivers or defensive driving courses for older drivers.

Clean driving history can also come to the benefit of an insured party. Minimal to no claims on your record make you a dream candidate for a car insurance provider, so they are willing to accommodate you at a lower premium for fewer or no auto accidents or traffic violations. Drivers with an extensive history of speeding or running red lights can have a difficult time securing a sustainable insurance premium. By adhering to traffic laws, not only will you be safer, but your insurance costs will drop.

Consider the vehicles on the auto policy.


Beyond the age of the drivers on your auto insurance policy, the vehicles that you insure can also impact the cost of car insurance. A vehicle’s make and model is among the most prominent factors in an insurance quote, along with the cost of repair and replacement to the car and the risk of theft. This is where a car insurance company will look into your residence, where you’re driving, and also where you are parking your car at night.

The premium is also impacted by your driving habits. Lower car insurance premiums are usually made available to people who spend less time on the road. The risk of accidents naturally increases the more time you spend behind the wheel, sending insurance costs higher for people like taxi and rideshare drivers. It’s important to consider the amount of time you spend on the road and the level of coverage you need to determine how much you’ll spend on auto insurance.