Most Cost-Effective Home and Auto Insurance Package
November 23, 2021Car Insurance for DUI offender’s
November 24, 2021Estimate Your Car Insurance Costs
How to Use Our Coverage Calculator to Estimate Your Car Insurance Costs
You can use our car insurance calculator to get a general idea of how much your vehicle insurance would cost without entering any personal information.
Continue reading for a detailed explanation of how vehicle insurance rates are calculated.
Each state has its own regulations for the quantity of automobile insurance you must have. Beyond that, the quantity of coverage you should pick is determined by your budget, the value of your automobile, and a trade-off between how much you want to pay in car insurance premiums and the type of protection you choose.
If you have a life event, your auto insurance requirements may alter. Perhaps you've relocated to a different state or completed the repayment of a loaned automobile. You should evaluate your vehicle insurance coverage on a regular basis to see whether you need to raise your policy or if you're overpaying for coverage. In order to discover the greatest price for your policy, you need also compare quotations from other insurers.
How To Calculate Auto Insurance Costs
Before lawfully operating a car on the road, each state requires drivers to have a particular amount of coverage. While state requirements differ, the most generally needed coverages are bodily injury liability, property damage liability, uninsured/underinsured bodily injury liability, and personal injury protection (PIP).
Bodily injury liability, comprehensive coverage, and collision coverage are the most expensive insurance protections. The cost of bodily injury liability insurance is high since it reimburses other drivers for medical expenses, lost earnings, and legal fees incurred as a consequence of an accident.
Comprehensive and collision coverage, which is included in a full coverage insurance policy, are expensive because they protect you against the expense of damage to your own automobile caused by on and off-road collisions.
You should know the approximate prices before picking which insurance protections to add. The typical yearly expenses of popular coverages, broken down by their limitations or deductibles, are as follows:
Coverage |
Limit/deductible per person |
Limit/deductible per accident |
Average annual premium |
| Bodily injury liability | $50,000 | $100,000 | $458 |
| $100,000 | $300,000 | $541 | |
| $250,000 | $500,000 | $704 | |
| Property damage liability | $25,000 | $297 | |
| $50,000 | $314 | ||
| $100,000 | $319 | ||
| Comprehensive/collision coverage | $1,000 deductible | $929 | |
| $500 deductible | $1,188 | ||
| Uninsured/underinsured motorist bodily injury coverage | $50,000 | $100,000 | $116 |
| $100,000 | $300,000 | $168 | |
| $250,000 | $500,000 | $249 |
Because full coverage insurance costs around $1,000 per year, you should assess your specific needs and use our calculator to determine whether it is reasonable to add them.
How Much Automobile Insurance Do You Require?
The amount of automobile insurance you require is determined by your state's minimum mandated coverage. Using the calculator above, you can determine your state's vehicle insurance requirements.
Minimum coverage standards differ by state, although the majority of jurisdictions require:
•Bodily harm liability insurance of $20,000–$25,000 per person
•Bodily injury liability insurance of $40,000–$50,000 per accident
•Property damage liability insurance ranging from $10,000 to $20,000
Although it is not the standard, some jurisdictions mandate drivers to have uninsured motorist coverage or personal injury protection insurance. We recommend starting with your state's minimum needed insurance for your baseline estimate.
Then, assess your requirements and consider increasing your coverage levels — as well as maybe adding additional coverage kinds — to guarantee you have appropriate protection.
How Much Automobile Insurance Should You Get?
The appropriate quantity of vehicle insurance coverage will depend on your demands and driving history. You may use the calculator to obtain a general idea of how much your auto insurance payment will be. It does not necessitate the use of any personal information.
The following is a short overview of the objective of each coverage type and our recommendations:
Types of coverage:
•What exactly is it? Liability insurance compensates other drivers who were involved in an accident in which you were at fault.
•Do you require it? Except for New Hampshire, all states need liability insurance.
•How much money should you have? More coverage will result in a higher annual cost; nevertheless, state minimums are sometimes insufficient to meet the average claim. Use our calculator to see how much more you'll have to pay.
•What exactly is it? Comprehensive coverage, commonly known as "acts of God" coverage, financially protects your vehicle against damage caused by occurrences beyond your control. Collision coverage, on the other hand, protects you financially from damages caused by colliding with another vehicle or a fixed object.
•Do you require it? Drivers who have leased or financed a car will almost certainly be obliged to obtain this insurance. If your car is new or worth more than $3,000, you should think about getting these coverages.
•How much money should you have? There are no restrictions to these coverages.
ReadMore
•What exactly is it? PIP pays for medical expenses incurred as a result of an accident
Regardless of who is at fault. It also compensates drivers and passengers for lost pay as a result of an accident.
•Do you require it? PIP is mandated in 12 states.
•How much money should you have?If your current health insurance does not cover auto-related accidents or if you wish to be reimbursed for lost income, we propose PIP.
Read More
•What exactly is it? Uninsured/underinsured motorist coverage compensates you for financial damages if you are involved in an accident in which the individual at fault does not have insurance or has insufficient insurance. It is capable of covering both bodily harm and property damage.
•Do you require it? More than 20 states require drivers to obtain uninsured/underinsured motorist coverage. Even if your state does not mandate it, you should consider obtaining it because it is inexpensive and one out of every eight drivers does not have insurance.
•How much money should you have Limitations for these coverages should be identical to the limits on your bodily injury and property damage coverage.
Read More
According to the Insurance Information Institute, the average claim for property damage liability in 2017 was around $3,638 while the average claim for bodily injury liability was around $15,270. The average accident claim was $3,425 and $1,817 for comprehensive claims.
Meeting the bare minimum of liability standards may be enough to cover the costs of a minor or ordinary mishap. However, it will not be enough to compensate for the financial pressure of a big accident, which may cost you thousands of dollars out of pocket. If you want to mitigate this risk and can afford it, we propose that you purchase supplementary coverage.
What Factors Are Considered When Calculating Your Car Insurance Cost?
Insurance companies base your auto insurance quote on a variety of criteria. Age and accident history, for example, are used to assess your "riskiness" as a driver. If you are a youthful driver or have a history of accidents, your auto insurance rates will be higher than those of someone who is older or has a clean driving record.
What is your age?
Driving record.
Number of dependents and marital status.
Your vehicle's year, make, and model.
The amount of kilometres you intend to put on the vehicle.
The types and levels of coverage you select.
Your deductibles' amount.
Your current location.
Your credit score.
Drivers under the age of 30, as well as novice drivers, are statistically more likely to be involved in an accident than older drivers. If you are a teen, or if someone on your policy is an adolescent, don't be shocked if your premiums go up.
Your premiums will rise if you have a history of accidents or traffic offenses since you offer a higher claim risk to the insurer. In contrast, if you have a clean driving record, you may be eligible for a premium reduction when compared to other drivers your age and in your area.
Married couples have fewer accidents, which can result in somewhat reduced rates unless one of the drivers has a bad driving record. Having dependents, on the other hand, implies there are more individuals to cover.
In general, the more expensive your vehicle, the more it will cost to insure since expensive auto parts are more expensive to replace or repair than inexpensive car parts. Insurance is also more expensive on modern automobiles than on older ones. The color of your automobile has no bearing on your insurance costs.
The longer you drive your automobile, the higher your rates will be since greater driving time equals more chances of an accident.
Your insurance premiums will be heavily influenced by the city and state you live in; in fact, pricing might vary based on the street you live on. Rural locations have a lesser probability of minor accidents, vandalism, and theft than cities, therefore city drivers can expect higher rates. Furthermore, other states, such as California and West Virginia, have higher average vehicle insurance prices.
If you have a poor credit history, insurance companies may deem you less likely to pay your monthly payments and less responsible overall, thus your premiums may be raised.
How Can You Lower Your Auto Insurance Costs?
Finding low-cost auto insurance might be tough if you have a dangerous driving history or reside in a state with higher coverage requirements. Drivers might consider taking the following methods to get the cheapest insurance rate possible:
Compare quotes from numerous businesses. The annual cost gap between the lowest and most costly insurance companies may be in the hundreds of dollars. This necessitates that drivers browse about and compare rates. Quotes should be obtained from big insurers like State Farm and Geico, as well as smaller providers such as Erie and Farm Bureau.
Look for bargains. Most insurance, particularly major firms like Geico or State Farm, provide a long range of discounts. These savings pile up, and you may already be eligible for some of them.
If you live with other drivers, think about getting a multi-car coverage. It is less expensive to add a new person to your insurance policy than to purchase two separate plans. A multi-car insurance can be shared with anyone you reside with.
Combine it with other insurance policies you have. Most major insurance providers allow you to combine your homeowner's or renters' insurance with your vehicle insurance. Choosing a package offer will result in a reduction in your overall rates.
Whether your driving profile has changed after you obtained your insurance estimate, send your updated information to your insurer to see if you qualify for a lower rate. Your credit score, marital status, and a number of dependents all influence your insurance prices. Improving your credit score or remaining accident-free may enable you to obtain a lower-cost quotation.
Commonly Asked Questions
What will the cost of my auto insurance be?
In the United States, the average cost of basic coverage vehicle insurance is $876 per year, or $73 per month. However, your prices will vary depending on where you reside, the type of vehicle you own, and your driving record.
How Do I Figure Out How Much Car Insurance I Need?
The best approach to assess vehicle insurance costs is to use ValuePenguin's quote calculator, which will estimate how much you'll spend for different insurers. You may also use our estimator tool to obtain a sample without entering all of your information.
How Much Auto Insurance Do I Require?
At the absolute least, you need enough automobile insurance to fulfill your state's legal requirements. However, we frequently advise most drivers to get additional coverage based on their loan conditions, the value of their vehicle, and how frequently they drive.
How Much Should I Pay for Auto Insurance?
The amount you should pay on insurance is determined by the coverages you require, where you reside, and your driving record. However, the national average for a minimum coverage policy is $876 per year.
What Kinds of Insurance Do I Need?
Almost every state requires you to have liability insurance, which covers bodily injury to others and property damage. Many states also mandate personal injury protection, which compensates for your own injuries in the event of a collision. We also recommend comprehensive and collision coverage if your automobile is worth more than $5,000 or if replacing it would be difficult.