Car Insurance Calculators, Quotes and Estimates

Naturally, motorists want to know the estimated insurance premium for a specific auto, if they move address, add another driver or get traffic tickets. Every little change in particulars will result in change in the cost. Knowing it will help in decision-making. For example, a teenager may go for a more modest car when he/she sees an expensive figure for a flashy sports car he/she considered first.

A calculator discussed here isn’t a tool that tells you how much coverage you need. It would have been a hell of a tool if it could do that for you. Only you can answer such questions because choosing a policy requires answers to what sort of security you want from it and how you view risk.

This post looks into proprietary car insurance premium calculators that can tell you how much a particular carrier wants. It may interest you or not depending on the other offers you get. 

For example, if the first quote is $1,500 it means nothing to you until you accept it. If the second is only $1,000 it doesn’t take long to forget about the first one. If the consequent ones are all over $1,500 this first one starts grabbing the attention. So, you should always see a quote as a rough estimate because you have no idea if it is cheap or expensive until you have a few more.

Usually a quote is seen as an estimate in most lines of businesses. However, auto insurance calculators are so advanced today that they can give you a firm price. If you think that it is a fair you can accept it without the need to go back and get it confirmed.

A Quote Is Only Binding for the Carrier

It is usually valid for a period of time and it is binding for the company until that time is over. You can go back the next day and accept it or walk away because getting a quote doesn’t tie you down. Most importantly, the price is only relevant to the carrier. It doesn’t tell you anything about how good it is. In fact, it only reflects the view of the insurer and therefore doesn’t have to be fair in anyway. It is your job to determine what is acceptable and you can only do that by getting a few more using a few more proprietary estimators.

How Much Is Automobile Insurance?

Many Internet platforms can help in answering this often asked question. There are a few comparison websites like this one that can facilitate quick delivery of results from various sources. They don’t require much information and they offer cheap instant auto insurance quotes online. Why not have a go and see how much you should pay?

There are a few influential factors for a particular driver or car and the answer depends on combination of these factors. It would be reasonably cheap to insure a family sedan when the drivers listed have good and long histories, owner has a good credit score and they live in a low risk area. Every negative record will raise the cost a bit.

It is only reasonable that a person with bad driving record pays a bit more to compensate for the higher risk of getting involved in an accident. Younger motorists will normally face high rates due to lack of experience, too. Cities are known to be more perilous compared to countryside and therefore a city zip code will be detrimental for your wallet.

Principles of Estimating Vehicle Insurance Costs

Premiums are as individual as policyholders. Furthermore, each person would have different circumstances, additional drivers and cars, require different level of coverage and live in a unique zip code. Therefore, it is almost impossible to estimate premiums without filling the form and getting the results.

Here are a few guidelines as to what to expect in terms of expected rates and how they are worked out.

  1. You can find a cheap full coverage with below components. The final figure is the total of various rates for various components below.
  • Physical damages to third party automobiles and property
  • Injuries to other people caused by the policyholder or permitted drivers,
  • Physical damages to own vehicle
  • Fire damage,
  • Storm, rain and other weather related damages,
  • Theft of the vehicle
  • Accidental damages
  • Consequential losses due to inability to use the vehicle, like rental costs
  1. Experienced drivers with clean records have a much larger pool of sources to shop around. They are the ones most likely to get the best deals. However, even them should shop around instead of hoping for the best from their current providers.
  2. Almost all of them consider youngsters to be dangerous. They are inexperienced in life and operating a motor vehicle. Both are essential for avoiding an accident and the situations that might lead to one. You can read further on average rates by age.
  3. The car is another key factor as they are classified from safe to high risk, just like the drivers. That is why it is important to get estimates before buying a car to make sure it will not cost an arm and a leg.
  4. Where you live is an important factor. Most calculators are zip code based. They include all the demographic data like number of stolen cars, other crimes, accidents and overall wellbeing of the neighborhood.
  5. State regulations will affect the rates applied. Companies have to follow the rules and regulations while underwriting policies and paying claims. Living in a state where rates are high will increase average premiums and every policyholder will be affected from it.
  6. Generally rates are based on the main driver and owner of the automobile. However, additional drivers usually add to the cost, especially if they are high risk and/or young. In other words, adding or taking off a person from the schedule will increase or decrease the price naturally.
  7. Estimators don’t work in linear fashion. As you buy more and more coverage rates start going down. That is why there may not be huge price difference between a full cover and liability only although there is substantial difference in the protection provided.
  8. Certainly, there are “cheap” and “expensive” policies in the sense that they are designed to be that way. A cheap one may have all the right and necessary modules in place. Nonetheless they will not be as comprehensive as some of the more well thought covers in terms of wording, provision and claim settlement details. In other words, cheap automobile insurance policies are designed to do the job without bells and whistles. Keep this in mind when you are going over the options.
  9. Prices are as individual as anything and all the above factors cause it to change. Therefore, you should let them know of any changes during the term and check again at renewal.

Automobile Insurance Quotes Vary Widely

Another very important factor is who offers the coverage. Insurance isn’t a commodity with a fixed market price. It is in fact a promissory contract where the carrier promises to compensate policyholders for damages and liabilities suffered in return for a fixed payment. That is why you may be justified to pay a little bit more to a name you trust more than others.

Each underwriter has to assess the risks associated with insuring a particular vehicle with agreed drivers. The main ingredient of their success is this ability to measure the risk. Most formulate their rates around historical data and future outlook. However, few of them would demand more money just because of their good name and reliability.

It is perfectly normal to see two different companies offer quotes that are $1,000 apart from each other. In other words, which one you apply will affect the result tremendously. If you somehow choose one of the most expensive carrier in your state you can easily pay 5 years worth of premium in one year, in comparison to what you would have paid if you shopped around and found a fairly priced one. That is why it is very important to compare before you decide.

It is naive to get one quote and go with it and it can turn out to be a costly mistake. The worst part of it is that it can take a few years before you realize you could have saved a lot of money. Large percentage of policyholders keep renewing automatically year after year, having no clue as to how competitive their carriers are.

How Do Car Insurance Calculators Work?

We often come across questions like how much premium a 20-year-old driver should pay. You should know that the price would change depending on the company that offers it, as explained in detail above. Unfortunately, there isn’t an easy and fair solution to it. Therefore, you may lose out if you just get one and that is the expensive one.

Each has its own proprietary way of calculating premiums for new applicants and current policyholders. These are complicated programs that deal with many aspects of the risks. They are not only smart solutions that can calculate quotes in seconds but also reflect the underlying underwriting view pretty efficiently. That can make companies a world apart from each other in terms of prices. Even more interestingly, they will change substantially when the applicant changes.

For example, quite a few insurers consider credit score to be a key data and they can charge about 20% more or less depending on how good the applicant’s credit score is. And yet there are still number of them that care more about traditional risk indicators like records, age and experience of applicants and less about the credit score. Now, if you have a good credit score you would probably get cheap rates from the former group, even if you have a recent claim or speeding ticket. On the other hand, the latter group would probably penalize you heavily because of the recent claim and it wouldn’t matter that you have a good credit score.

That is why it is essential that motorists get several quotations first. Then, they should look at the coverage, price and reliability of the provider and try to decide if it is good value for money. Visiting a comparison website would make this task a lot easier than it sounds. They will help you preview the offers from several sources and choose whichever ones you like.

A premium may be a simple looking number in dollars. But this number is determined after careful calculations. Essentially, you will need to provide a few details to know how much is auto insurance for you. You may need to repeat this process several times for each of different providers. However, most of the proposal forms take only few minutes that in no time you will have a good idea how much is a fair figure. You can start getting a few using our form above.