Calculating how much you should pay for car insurance is important to create a feasible financial plan. Using a quick car insurance quote calculator is an easy way to start with specific numbers in mind. There are many online services that provide quote calculators, but your final policy decisions still depend on specific consideration factors.
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Why Should You Use Quote Calculator?
While you can easily look for the average policy prices among popular carriers, these numbers are still too generic. You need to consider various factors in your life and driving habits to get more accurate calculations. A quick car insurance quote calculator allows you to choose the best policy based on your and your vehicle details.
A calculator is also useful if you need an anonymous quote. You can find quotes from different carriers without adding too many details from your personal information. While it reduces the accuracy of the final calculations, it is still a better deal than sharing your personal information just for insurance shopping.
Finally, a quote calculator is a good way to save money without sacrificing protection. According to Compare the Market, customers can save as much as USD586 from their premiums by using a calculator.
What Factors Included in Quote Calculation?
For a quick car insurance quote calculator, you still need to input some basic information, mostly about your car and driving history. Depending on the carrier, you will need to provide this information:
- Car model, year, and make
- Address where you registered the car
- Proofs of tickets, accidents, and other incidents that befell the car
- Specific coverage type that you want
Not all insurance companies ask those, but you still need to prepare for the information, especially if you use the calculator to compare quotes between different insurance companies.
Examples of Quote Calculation Numbers
If you live in the United States and never have traffic accidents, tickets, or other incidents and violations, you can get around USD144 of monthly premium and USD1,730 of yearly payment. However, different carriers offer unique numbers, which is why you need a quick car insurance quote calculator.
Here are some examples of car insurance calculator quotes based on the providers and your condition when you apply for coverage.
1. Standard Car Insurance Quotes
Standard car insurance quote means the driver is around productive years (30-37 years old), married, and without a history of ticketing or other incidents. USAA offers the lowest price for the annual rate, consisting of USD88 for monthly premium and USD1,054 for annual.
The highest numbers came from other carriers, like Nationwide and Gecko. The average monthly rate is around USD108, while the annual one is around USD1,300.
2. Insurance Quotes Based on Driving History
Insurance companies check your driving history, so if there were accidents or collisions, they can affect your quotes. Again, if you are a person in productive age (say, male age 30 to 37 years old), your rate may increase to around USD224 per month, or USD2,689 per year.
USAA and State Farm give the lowest monthly and annual rates for drivers with accident history: around USD137 to 157 per month or USD1,647 to 1,882 per year. The highest rates are from Gecko; USD235 per month or USD2,822 per year.
3. Insurance Quotes for Young Drivers
Any quick car insurance quote calculator will tell you that young drivers are considered high risks. The quote calculation results are generally high, with the average annual rates of USD6,912 per year for 16-year-olds and USD4,958 for 18-year-olds.
There are not many insurance providers that can give cheap rates for young drivers, but USAA may offer you some options for cheaper insurance policies. The annual rates range between USD1,292 and USD3,398.
Information Required for Car Insurance Quote Calculator
Before using a quick car insurance quote calculator, make sure you have the required information ready. Depending on the insurance providers, you may have to answer questions regarding of:
- Marital status
- Current job
- Location (state, city, ZIP code)
- Age
- Driving record
- Vehicle information (age, type)
- Coverage type you want
- Deductible
Some calculators may incorporate other information to better calculate quotes for you. For example, in the United States, you may also get questions about credit score and military affiliation.
Can the Numbers in Car Insurance Quote Calculator Change?
Once you get your quotes, can you rely on these numbers? Will they change when you finally apply for a policy?
Yes, they can, and it is to be expected.
A quick car insurance quote calculator is not meant to give you fixed answers. It is a tool to help you plan your finances ahead before deciding to shop for policies. The numbers may differ when you finally contact your chosen insurance carrier and get a full quote.
There are several factors that may contribute to these changes, such as:
- The company’s actual rate policy
- Changes in the insurance rates
- Changes in your life plan (work, additional driver, accident, new purchase, or modification)
- Finishing driving course
- State-required coverage addition
While the numbers in your quote calculator are not fixed, you can still use them to get a ballpark calculation about how much you should spend.
Also, even if your quote calculator gave fairly accurate numbers, your insurance carriers may modify your rates after the payment of the first premium. This is because insurance carriers practice underwriting periods, which allows them to do additional background checks and modify your rates accordingly. It usually happens between 30 and 90 days.
How to Get the Best Rates from Quote Calculator
Good news about the quick car insurance rate calculator is: you can plan ahead and choose strategies to get lower rates. When your quote calculator shows lower rates, you can expect the insurance carrier rates to follow suit.
Try lowering the limits of coverage, such as from USD100,000 to USD75,000 for bodily injury. This will give you lower numbers in insurance quotes. However, if there is a state-mandated coverage limit in your area, the insurance carrier is obliged to inform you and adjust accordingly.
To anticipate any changes during the underwriting period, make sure you submit true and complete information when asking for quotes. Avoid doing anything that can change your rates, such as doing car modifications or driving recklessly.
Using a quick car insurance quote calculator is not a surefire way to get accurate quotes. However, it is useful to help you plan your finances. Make sure to use it correctly and submit true information to get the fairly accurate numbers!