Content of the material
- Looking for a Car Insurance Cost Calculator?
- Why car insurance estimates can change
- How Root calculates car insurance rates vs. others
- Car Insurance Calculator: Vehicle Type
- How much does car insurance cost by credit score?
- What factors are used to calculate your car insurance cost?
- Top Companies For Car Insurance Quotes
- USAA: Best For Military
- Geico: Best Overall
- Factors that influence car insurance estimates
- How to find the best car insurance rates
- So, how do I get car insurance?
- Frequently asked questions
- Skip the Auto Insurance Calculator and Get a Quote
Looking for a Car Insurance Cost Calculator?When it comes to car insurance, your policy is unique to you. A car insurance calculator helps determine what your cost will be by factoring in your coverage needs, location and other personalized information, all while helping identify the best coverage for you.We can work with you to get a car insurance quote by using our car insurance cost calculator to let you know how much your specific policy will cost.
Why car insurance estimates can change
A car insurance estimator simply provides an educated guess of your rate. Most companies allow you to purchase insurance and start coverage based on this rate. However, there are situations in which this rate may change once you pay your first premium.
States allow car insurance companies to investigate your background and modify rates or even cancel your policy within a certain time limit. This is called the underwriting period, and it lasts from 30 to 90 days depending on the state.
Say your 17-year-old son lives in your home but drives his own car. You didn’t include him in the car insurance estimator. The underwriter can raise your rate if they find this out. In some cases, your auto insurance policy could be canceled for providing material differences that greatly influence the financial risk you pose to the insurance company.
Differences in your vehicle information, address and living situation can all affect your rates after you use a car insurance estimator. That’s why it’s important to provide complete and current information.
How Root calculates car insurance rates vs. others
Every car insurance company determines their rates differently. This means your estimate will vary across different websites as you shop around and use their calculators. Any quote you opt to receive will also vary for the same reason.
Not to mention, most car insurance companies will use their calculator to get you in the door and then hit you with a quote that is based heavily on factors out of your control such as your demographics. This means your premium could be negatively impacted because of a factor like your age or credit score.
At Root, we do things differently.
We base your rate primarily on your driving behavior, not your credit history. Put simply—the better you drive, the more you could save.
Car Insurance Calculator: Vehicle Type
Auto insurance companies examine the vehicles involved in the most accidents and which ones produce the most substantial injuries. Both of these factors come into play with your premiums. The provider will also examine how much your car costs, the expense of repairing it, and if the model is stolen often. All of these factors increase the collision coverage and comprehensive insurance coverage costs.
If you plan to drive an exotic sports car, you will have to find a provider willing to cover it. The best thing to do is to examine your options before you sign the financing paperwork.
Knowing whether your vehicle is the cheapest to insure or one of the most expensive is critical to understand before the sale. A car insurance estimator is simple to use and will give you the information you need to make an educated decision.
How much does car insurance cost by credit score?
Statistically, drivers with poor credit file more claims and have higher claim severity than drivers with good credit, according to the Triple-I. This means that, in general, the better your credit rating, the lower your premium. Your insurance credit tier is determined by each car insurance provider and is based on various factors; it probably won’t exactly match the scores from Experian, TransUnion or Equifax as it is a credit-based insurance score, not a credit score. The table below showcases how credit can affect your annual full coverage car insurance premium.
Regulations in California, Hawaii, Massachusetts and Michigan prohibit auto insurers from using credit as a factor when setting rates. The state of Washington continues to evaluate whether or not credit will be banned as a rating factor, but currently allows its use.
|Average cost of full coverage car insurance by credit score|
What factors are used to calculate your car insurance cost?
Insurance companies calculate your car insurance rate based on a number of factors. For instance, age and accident history are used to determine your “riskiness” as a driver. If you are a young person or a driver with an accident history, your auto insurance estimates will be costlier than those of someone older or someone who has a clean driving record.
Factor How does it impact your insurance rate? Your age Younger drivers tend to pay more, especially teens.Driving history You’ll likely pay more if you have a recent at-fault accident or driving infraction, like a DUI.The year, make and model of your car Cars that are older, slower and cheaper and have more safety features tend to be cheaper to insure.Marital status and number of dependents Married people often see a slight discount, but you’ll pay much more if your teenage son or daughter is on your policy.Your annual mileagePeople who drive less tend to see lower rates.Show All Rows
Top Companies For Car Insurance Quotes
When you want the best price for coverage, we recommend using a car insurance estimator to compare rates. If you’re not sure which providers to get quotes from, we recommend checking out USAA and Geico.
USAA: Best For Military
Not only does USAA maintain an A++ financial rating from AM Best, but it regularly scores at the top of J.D. Power studies including the 2021 U.S. Auto Insurance StudySM, 2021 U.S. Insurance Shopping StudySM, and the 2021 U.S. Auto Claims Satisfaction StudySM. The downside to USAA is that the policies are only available to military personnel, veterans, and their family members.
If you qualify, you can sign up for liability protections, comprehensive and collision insurance, and these add-on coverages:
- Roadside assistance: This additional plan covers emergency towing, gas delivery, flat tire repair, and lockout services.
- Accident forgiveness: In select states, USAA will not raise your rates after one accident with this coverage.
- Rental reimbursement: You can receive money toward a rental vehicle during a covered claim.
- Other financial products: USAA offers more than just car insurance. You can find additional insurance products for your motorcycle, home, boat, pet, life, and more.
Customers can’t say enough good things about USAA. Here’s one example:
“They have always done the right thing by me, even when it wasn’t in USAA’s best interest. I have long said that if you have to be in an accident, pray the other driver has USAA insurance.”
– Matt H. via the Better Business Bureau (BBB)
To learn more, read our full USAA car insurance review.
Geico: Best Overall
Another highly recommended insurer is Geico. The company regularly offers some of the lowest rates while also providing exceptional customer service. As we look at the three studies performed by J.D. Power, we once again see good results for Geico.
The company also has an A+ rating from the BBB, which is no small feat. Sure, there are complaints from customers, but you will find that with any provider you choose.
What you can expect from Geico is a standard list of insurance coverage options, along with these optional plans:
- Roadside assistance: Receive the help required for towing, fuel delivery, jump-starts, flat tires, lockouts, and more.
- Rental car coverage: If you need a vehicle while yours is in the shop for a covered repair, Geico provides a specified amount of reimbursement for your transportation requirements.
- Accident forgiveness: Your current rate remains in place after an at-fault accident with this coverage.
- Glass coverage: You can choose full glass protection that covers automotive glass damage after road debris hits it, a storm occurs, or other incidents.
- Protection for belongings: If your car is broken into, you can receive extra compensation for anything that was stolen from inside.
It also doesn’t take much effort to find positive customer reviews from existing Geico policyholders.
“I’ve been a customer of Geico for close to 20 years. My kids have had a few accidents and they have been extremely professional and I have zero complaints about the claims they handled. Their service has been outstanding.”
– Kenneth A. via BBB
To learn more, read our full Geico car insurance review.
Factors that influence car insurance estimates
Since car insurance exists to pay for damages that you might cause in an accident, companies determine your risk of an accident based on many factors. These include:
- Driving history: Recent accidents, speeding tickets and traffic violations directly affect your auto insurance rates.
- Age: Teen drivers have less experience on the road and can pay double or triple what middle-aged drivers pay. This is why many stay on their parents’ insurance plans for some time.
- Location: Densely populated areas have higher rates of accidents, vandalism and theft, so insurance costs more in these areas.
- Vehicle: Safer cars cost less to insure, while expensive and high-tech vehicles cost more to insure.
- Other drivers in your household: As you list drivers in your household on your policy, your car insurance premiums can change depending on who is covered and excluded.
- Mileage: If you are a low-mileage driver, you can usually save money on your car insurance.
- Credit history: All states except California, Hawaii and Massachusetts allow companies to use credit-based insurance scores to predict risk. The lower your score, the higher your car insurance estimates.
- Deductible: A high deductible will lower your car insurance policy rates and vice versa.
- Discounts: All insurance companies offer at least a few discounts, and some discounts may be better for your situation than others.
How to find the best car insurance rates
Buying car insurance doesn’t have to mean breaking the bank; there are ways to save. Discounts are one of the best ways to lower your premium. Most major car insurance carriers offer discounts. Here are some of the most common insurance discounts in the U.S.
- Claims-free: Drivers who have no auto claims on their record for the past several years typically qualify for savings.
- Bundling insurance policies: You can often reduce your auto insurance premium when you bundle your car insurance policy with a home insurance policy or another type of policy offered by your insurer, earning discounts on both policies.
- Good student discounts: Many auto insurers offer discounts for young drivers who earn good grades in high school or college.
- Paying in full: If you can afford to pay your car insurance premium in full, versus monthly or quarterly, it may reduce your premium.
- Telematics: Most car insurance companies offer telematics programs where you can allow them to track your driving habits with an app or device for possible savings.
Because every auto insurer offers a different suite of discounts, speaking with your insurance agent or company representative may be the best way to learn about savings opportunities.
Additionally, getting quotes from several car insurance companies can help you compare rates. Each company sets its own rates, so the same level of coverage can cost vastly different amounts with different providers. Comparing quotes might help you find the lowest price for the coverage you need.
So, how do I get car insurance?
Getting a car insurance estimate from Nationwide has never been easier. Visit our car insurance quote section and enter your zip code to begin the auto insurance quote process. Within a few minutes, you’ll have an auto insurance estimate based on your specific circumstances. You can also talk to a Nationwide agent and get a quote over the phone.
Frequently asked questions
The average cost of minimum coverage car insurance in the United States is $785 per year, or $65 per month. However, your rates will vary based on where you live, what kind of car you have and your driving history.
The best way to calculate the cost of auto insurance is to use our online car insurance calculator, which will help you estimate how much you’ll pay for car insurance based on your location, car and how much coverage you need.
At the very minimum, you need enough car insurance to meet the minimum legal requirements in your state. However, we usually recommend buying additional coverage if you drive a lot, have a newer car or are paying off a car loan or lease.
How much you should spend on insurance depends on what coverages you need, where you live and your driving history. The average price of car insurance nationwide is $785 per year for a minimum coverage policy.
Almost every state requires liability insurance, which pays for bodily injuries to other people and property damage. Many states require personal injury protection as well, which pays for your own injuries in a crash. We also recommend comprehensive and collision coverage if your car is worth more than $2,000 or if you would have trouble replacing it if it was destroyed.