Auto Insurance Rates Calculator
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There are numerous factors which determine auto insurance rates. Below you will find a break down of the components that insurance companies use to calculate rates. The current national average for auto insurance averages $829 per year. This average varies depending on location and coverage options. Most states require certain liability limits which insurance companies use to calculate rates. Use this information to estimate what your auto insurance cost should be. It is estimated that over 90% of consumers overpay for auto insurance. Make sure
to compare rates from several companies. You should be able to save several hundred dollars a year by comparing.
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Auto Insurance Coverage and Rate Averages
Auto Insurance costs are calculated by comparing the 3 major categories of insurance: Liability, Collision and Comprehensive. All insured drivers are required to carry liability coverage but collision or comprehensive are optional in most states. The averages below are broken down by insurance category and reflect the national average paid per vehicle.
1. Liability:
National Average $496
Description: Covers injuries caused by the policy holder to another person.
2. Collision:
National Average $309
Description: Covers repairs to policy holders vehicle as a result of an accident
3. Comprehensive:
National Average $143
Description: Covers your car for losses other than collision like theft, flood, fire or animals.
3. Overall Average:
National Average $829
Description: The average cost calculates what drivers pay for insurance per vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages.
Factors Used for Calculating Auto Insurance Rates
Auto Insurance companies set rates based on the following factors: Driving Record, Age, Credit Score, Vehicle Type, Vehicle Use and Garage Address (vehicle location). By understanding how rates are set you can help reduce your rates.
Driving Record:
Insurance carriers review your driving record and history. Previous tickets and accident history will be one of the most important factors in determining your rate. Generally companies will review 5 to 7 years worth of driving history.
Drivers Age:
Younger drivers tend to have higher rates due to higher accident history. Older drivers tend to have lower rates because of more experience and better driving habits.
Credit Score:
Recently insurance carriers have been checking credit history as part of determining insurance rates for some drivers. Insurance companies feel that credit history can determine driving habits.
Type of Vehicle:
The auto you own will help determine your insurance rate based on the value, safety record of the model and the average repair cost. It isn't just the value of the vehicle that matters. Luxury and sports car will tend to have higher rates than passenger sedans.
Vehicle Use:
How you use your vehicle and and the distance you drive also determines your auto insurance rates. The more your drive and what your vehicle is used for (business, school, shopping) helps determine overall risk. Rates will be lower for drivers that only drive several miles a day. Rates will be higher for drivers that use their car for business and drive several hundred miles a day. By reducing your vehicle use you can reduce your auto insurance rate and save hundreds of dollars a year in gas.
Garage Address:
This is the location where your vehicle is parked. Insurance companies evaluate the location of your car to determine the risk of theft or damage. Rates are generally higher in larger population areas like cities and less in rural areas.
After evaluating the factors that determine your auto insurance rate make sure to get at least 3 quotes before choosing a policy. Use the form below to find the most competitive carriers in your area.
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