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Car Insurance Estimated Cost

Car Insurance Estimated Cost

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Net Worth is the total value of all your assets including property and investments minus liabilities (what you owe).

If you prefer a lower premium and are willing to risk higher out-of-pocket expenses in the event of a claim, then you have a higher risk tolerance.

You can opt to include Towing and Labor Coverage on your policy. Services include vehicle tows, jump starts, and flat tire changes.

When you purchase our optional Rental Coverage and have a covered collision or comprehensive loss, we’ll provide a rental car for as long as it takes a Liberty Mutual-approved repair facility to fix your car. Daily limits apply. Program availability varies by state.

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Bodily Injury/Damage No Coverage Comprehensive No Coverage Collision No Coverage Towing Coverage No Coverage Rental Coverage No Coverage Edit Print Contact Us Email

What Coverage
Is Right For You?

Liability, collision, comprehensive. What types of coverage do you need for your auto and passengers and how much should you have? Estimate the coverage ranges that are right for you. Our Calculator can help you get started.

Bodily Injury/ Property Damage

Bodily Injury coverage is mandatory in most states. It covers other people’s bodily injuries or death for which you are responsible, up to the limits of your policy.

Property Damage covers you if your car damages someone else’s property. Damage is usually to someone’s car, but it could be any property—such as a bicycle, or a house.

Comprehensive

Comprehensive covers losses resulting from incidents other than just collision. For example, you are covered if your auto is stolen or damaged by flood, fire or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.

Collision covers damage to your car when your car hits, or is hit by, another auto or other object up to your policy limits.

Towing and Labor Coverage

You can opt to include this coverage on your policy. Services include vehicle tows, jump starts, and flat tire changes.

Rental Coverage

When you include this coverage on your policy, and have a covered collision or comprehensive loss, we’ll provide a rental car for as long as it takes a Liberty Mutual-approved repair facility to fix your car. Daily limits apply. Program availability varies by state.

Bodily Injury/ Property Damage: No Coverage

Bodily Injury coverage is mandatory in most states. It covers other people’s bodily injuries or death for which you are responsible, up to the limits of your policy.

Property Damage covers you if your car damages someone else’s property. Damage is usually to someone’s car, but it could be any property—such as a bicycle, or a house.

Comprehensive: No Coverage

Comprehensive covers losses resulting from incidents other than just collision. For example, you are covered if your auto is stolen or damaged by flood, fire or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.

Collision: No Coverage

Collision covers damage to your car when your car hits, or is hit by, another auto or other object up to your policy limits.

Towing Coverage: No Coverage

You can opt to include this assistance in your coverage. Basic roadside includes services such as vehicle tows, jump starts, and flat tire changes.

Rental Coverage: No Coverage

This optional coverage provides vehicle rental service if your auto is in the repair shop or completely disabled. Basic coverage is $30 a day.

The Calculator is a tool designed to help you estimate coverages and amounts that might be best for you, based on the information you provide. The Calculator is not intended to suggest or recommend specific coverage selections or limits but rather to provide information for you to consider. Coverage types and availability vary by state; additional coverages and amounts are also available.

© 2012 Liberty Mutual Insurance. All Rights Reserved.

Estimating car insurance rates: What you need to know

For ballpark estimates on your car insurance rates, or to find out how, why or how much your car insurance will go up or down after a ticket or a change of address, we have several helpful articles and car insurance calculators.

CarInsurance.com’s average car insurance rates tool provides average auto insurance rates for nearly every ZIP code in the U.S. It allows motorists to explore comparative rates within their own city or across the nation.

Car Insurance Estimator Calculator

The “How much car insurance do I need?” tool can suggest what level of coverage is best for you, based on your age, the state you live in, your car’s model year, whether you own or finance your car, and whether you own or rent your home.

By their nature, averages and estimates don’t apply specifically to you. For that, you can use our online quote comparison tool and get matched with multiple car insurance providers, who will give you a quote, or you can call one of our licensed insurance agents at 855-430-7753.

But you may simply be looking ahead to a new car, a marriage or a move across town and wonder about the consequences. We advise that you check car insurance rate quotes before making life changes, so you’ll be aware of how your premium may change and can budget for it appropriately, or switch to a provider that offers a better price given your new situation.

Below are answers to some of the most common questions about the factors affecting your car insurance rate.

How much does my age affect my car insurance rates?

Auto insurers penalize inexperience rather than age. Of course, the vast majority of inexperienced drivers are teenagers. Rates for 16-year-olds can double or even triple their parents’ car insurance annual premiums.

The less experienced the driver, the higher the rates. Among drivers with clean records and no accidents, no other factor changes rates more.

Statistically, inexperienced drivers crash – a lot – and so they are the riskiest category of drivers to insure. Car insurance rates reflect this high risk.

The inexperience penalty drops slowly until about year 10. As an example, this is what the inexperience surcharge for basic bodily injury liability coverage looks like at one California car insurer during the first decade of driving:

If you keep a clean record after age 25, rates typically stay relatively stable until you become a senior driver, when crash rates go up and premiums begin to rise again.

Does my address affect what I pay for insurance?

If you live in a highly populated urban area, congestion, accidents and insurance claims are more prevalent. Living and driving in a metro area will make your rates higher than if you live in a rural area, where having an auto accident is less likely.

Car insurance companies look at factors such as the rate of stolen cars in your area, and the number of cases of vandalism, claims and fraudulent claims. All of this helps insurers discern the risk associated with insuring you and your car in that ZIP code, whether you ever have made a claim or not.

All other factors equal, your ZIP code can change your rate by hundreds of dollars.

Are some cars cheaper to insure than others? Why?

Auto insurers track which cars have the most wrecks and the worst injury records. Those factors impact the cost you pay for liability insurance — which covers the damage you cause to others.

Insurers also know which cars are expensive to buy, expensive to repair or more easily stolen. Those factors drive up the cost of collision and comprehensive coverage, which repairs or replaces your own car.

The calculations about the risk of a certain car are made independently. For example, if you are an inexperienced driver in a car with a poor claims record, you are penalized twice. A more mature driver in the same car would pay a surcharge for the car, but not one for inexperience.

Insurers can also choose not to cover certain types or brands of cars. For example, some won’t insure a lifted pickup truck, a kit car or certain exotic cars.

How does my marital status affect my car insurance rate?

Married couples have been found to have fewer accidents and claims than single drivers do.

Rates can be from 5 percent to 15 percent lower for married couples just because of their marital status. But there are also other discounts married couples can look forward to when they combine their policies, such as a multicar discount, or a multipolicy discount if they have a renters or homeowners policy with the same insurer.

An insurer considers you single if you have never been married, or are widowed or divorced.

How much does my driving record impact my car insurance rate?

Your driving record is paramount to your car insurance company. Safe drivers get a discount from standard rates for keeping a clean driving record. On the flip side, individuals who have a moving violation (speeding or a DUI, for example) or an accident on their motor vehicle record are more of a risk and can face a surcharge on top of standard rates.

If you have enough violations or accidents, you can become uninsurable according to some car insurance companies’ underwriting rules. For example, some insurers reject anyone with four or more chargeable accidents in three years, or more than three DUIs in seven years, or more than 15 points on the driver’s motor vehicle record.

In general, a minor violation such as a speeding ticket can boost your rates 20 percent to 40 percent. You may not be surcharged for the actual ticket, but will lose your good-driver discount. If you have a major violation like a DUI, your rates can go up 100 percent or more. The more risk you appear to be to your auto insurer, the more you will pay.

How much does my commute matter?

You car’s annual mileage is a rating factor for many car insurance companies. The less you drive, the less risk you have of being in an accident. Also, how far you drive for your commute lets the insurer know what kind of risk you are during the congested, high-risk hours.

Your insurer can also use the length of your commute to determine if you head into a metro area from your rural or suburban home. If you live outside of Los Angeles, but your commute is 30 miles, your insurer can predict that although your local area is low-risk, your commute into the heart of a very populated metropolitan area pushes your risk factor much higher.

Why should my credit history count?

Insurance companies routinely check your credit rating as part of your application process, except in California, Massachusetts and Hawaii, where state law prohibits credit from being a pricing factor.

Credit scores help the insurance companies assess the risk level of a potential customer. Research has shown that those with lower credit scores (typically under 600) are more likely to file claims, file exaggerated claims, or even commit insurance fraud.

Those with low scores may face a surcharge. Rates for those with higher scores are typically unaffected.

Your credit score can also affect how an insurance company allows you to pay for your policy, since statistics show that people with lower credit scores are more likely to miss a payment. Customers with very poor credit scores may be required to pay the entire premium for a six-month policy up front. Customers with low credit scores sometimes won’t qualify for monthly billing, or they may need to pay a large percentage of the policy up front and the remainder monthly.

Are some types of coverage more expensive?

There are several types of car insurance. The more coverage you get, the more you will pay. If you get a bare-bones liability policy that covers only what the state requires, your car insurance costs are going to be less than if you bought coverage that would repair your own car, too.

Liability coverage tends to cost more because the amount the insurance company risks is higher. Coverage for collision and comprehensive insurance is limited by the replacement cost of the car itself. But medical bills and multiple-car accidents could push a liability claim into the hundreds of thousands of dollars.

If you don’t have enough liability coverage, you could be sued for the difference by anyone you injure.

Comprehensive and collision damage is affected by the deductible you choose. The higher the deductible, the less the insurance company will have to pay — and the lower your rates.

Medical coverage, such as uninsured motorist bodily injury, medical payments or personal injury protection (PIP), will cause your rates to go up. Without some kind of medical coverage, if you don’t have health insurance elsewhere, you might not be able to pay for treatment if you are injured in an accident you caused.

Is there any difference between insurance companies?

Insurance companies must follow state laws, but within those laws they price coverage based on their own underwriting rules and guidelines. One insurance company may look at your driving record for five years, another only for three. The surcharge for a speeding ticket may raise your insurance by 10 percent with one carrier but only 5 percent with another.

You should shop around and get quotes from several carriers. Make sure you are comparing apples to apples — the same coverages with each insurer — and check the reliability and financial stability of the insurance carrier.

Finally, make an informed decision about who you want to be insured with for the best price and protection. Don’t let a small savings drive you away from an insurance company you know and trust.

How to Estimate Car Insurance Before Buying a Car

Even the savviest car shoppers can forget to estimate car insurance costs before buying.

The type of car you drive is just one variable car insurance companies plug into their formulas to determine how much to charge you. Depending on the vehicle and insurance company, the cost of car insurance can vary by hundreds of dollars a year for the same driver.

The type of car you drive is one variable car insurance companies use to determine your rate.

That’s why it pays to get some initial car insurance quotes for models you’re thinking about buying. Along with gas mileage and maintenance costs, car insurance premiums are an important consideration when calculating the total cost of owning a car.

If you want to see average rates for drivers in your state, try this car insurance cost estimator.

Why some cars cost more (or less) to insure than others

Certain cars cost more to insure than others because carriers use crash and theft statistics to help set rates for each model separately. So if the car you choose tends to be stolen or crashed more, chances are you’ll pay more for insurance. The reason sports cars cost more to cover, for example, is because they’re more likely to be driven fast and crashed hard by their owners.

Here are some specific characteristics that affect the cost of auto insurance:

  • Retail price: Generally, the pricier the car, the more expensive it will be to insure. Assuming you buy comprehensive and collision coverage, the insurance company will be on the hook to pay out the car’s market value if the vehicle is stolen or wrecked beyond repair.
  • Cost of parts: High-end models often use parts made from carbon fiber and other specialized materials that are expensive to repair, which drives up the cost of damage claims.
  • Safety: Over time, cars that do a good job of protecting drivers and their passengers bring down insurance costs. Fewer injuries mean fewer claims for medical payments and personal injury protection.

How to get car insurance estimates

In your search for a car, follow these steps for estimating the cost of car insurance.

  • Narrow down your top choices for vehicles. Find tips for picking a car here.
  • Decide how much coverage you need. If you’re buying a new car, include collision and comprehensive, which cover damage or loss of the vehicle. If you get a car loan for a used car, you’ll need this coverage because the lender will require it.
  • Get quotes for the same amount of coverage for the vehicles you’re thinking about buying. NerdWallet’s car insurance comparison tool can help you get started. You don’t have to provide personal information to get initial estimates.

Now you can factor in the cost of car insurance to help you make a final choice.

Shop around for coverage

When you shop for car insurance, remember to compare quotes for the same levels of coverage.

Do some comparison shopping when you’re ready to buy insurance. Look at car insurance quotes and for a company with a good reputation for customer service.

When you shop for car insurance, remember to compare quotes for the same levels of coverage. A company that offers a particular discount might still be more expensive than an insurer that offers low-cost coverage overall.

Your Car Insurance Rates

It’s safe to say that you’re paying too much for car insurance. You may have signed up for your spouse’s or parent’s plan without thinking. Or, you may have gone with a locally advertised insurance company or the first search results that popped up on Google.

This is the way most people choose car insurance. It’s straightforward, effortless, and makes sense. But putting in a little extra effort could pay big in the long run.

Comparing car insurance providers and weighing risk factors could shave hundreds of dollars off your annual premium.

How much should you pay for car insurance?

This is an excellent question with no easy answer. There are countless factors that determine how much you will pay for car insurance, but one thing is for sure—if you haven’t researched your risk factors, you’re probably paying too much.

To break it down, we can start with car insurance averages. The average cost of car insurance varies by state. Some states have notoriously higher car insurance premiums than others. Michigan is the state that takes the cake for the nation’s most expensive average car insurance rates.

Based on Insure.com’s 2014 analysis of auto insurance premiums, the top three most expensive states for car insurance are:

What about the cheapest? If you live in Ohio or Maine, then you’re in luck. Ohio has the cheapest car insurance rates in all 50 states, and Maine has the second lowest rates.

Car insurance rate fluctuations throughout the US hinge on a number of variables, including traffic, urban versus rural regions, state insurance stipulations, percentage of uninsured drivers, number of car insurance providers, and rate of auto theft.

If you’d like to put a dollar amount To this damage:

Average annual car insurance premiums in Michigan hit a whopping $2,551

West Virginia follows in the number two slot at $2,518 /year.

Georgia drivers can expect to pay $2,201 average.

At the bottom of the list:

Car insurance rates in Ohio and Maine are at $926 & $964 /year. respectively

According to CNNMoney, there’s only one way for an auto insurance provider to quote car insurance rates: based on risk.

This risk is essentially an educated guess. There’s no way for an insurance provider to predict your skill and safety level as a driver. Risk will be statistically assessed based on a collection of risk factors, including but not limited to age, sex, marital status, driving history, and type of vehicle.

Just as important to remember is the fact that not all insurers calculate risk with the same formula. Risk is a guess. It’s anyone’s game.

Comparison shopping insurance providers is the only way to take your risk assessment into your own hands to find the cheapest market rates.

Insure.com’s survey blames Michigan’s sky-high car insurance rates on the generous personal injury protection benefits required in the state. You see, Michigan is a no-fault car insurance state. This means that every single driver on the road must purchase personal injury protection (PIP) within their auto insurance policy in order to legally drive.

West Virginia doesn’t have the same no-fault laws as Michigan, but it has its own share of problems: specifically, deer. West Virginia is a state with vast rural regions. State Farm data indicates that drivers are statistically more likely to hit a deer in West Virginia than any other state.

Georgia car insurance prices are driven up by a number of factors, including Atlanta traffic, a rising number of personal injury lawsuits, and a surge in uninsured and underinsured motorist claims.

Here are a few important facts to remember about your car insurance rates:

  • Drivers are required to have valid insurance in almost all 50 states.
  • The average driver will claim an accident on their record every 17.9 years.
  • Car insurance premiums normally drop at the age of 25.
  • Fender benders are the most common car insurance claim, followed by theft.
  • Every time you get behind the wheel, you never know what is going to happen. That’s precisely why car insurance premiums are calculated based on a game of risk. Once you understand your specific car insurance risk factors, your rate quote will no longer be a mystery.

    The Ohio Department of Insurance, home to the cheapest
    car insurance rates in the nation, explains,

    “Insurance is a product that relies on the spreading of risk among diverse individuals or groups in order to operate. All insurance companies use data and statistics to predict levels of risk for various individuals or groups. This risk calculation information is also used to develop rating plans. Generally, higher risk factors will result in higher premium rates and lower risk factors will drive premiums lower.”

    Uninsured Drivers

    Every time you get behind the wheel, you never know what is going to happen.

    That’s precisely why car insurance premiums are calculated based on a game of risk. Once you understand your specific car insurance risk factors, your rate quote will no longer be a mystery.

    In New Hampshire, drivers are required to provide proof of sufficient funds to pay for any injury or damage in an at-fault accident.

    How to Calculate Your Car Insurance Rates

    Now to the nitty-gritty. You can use these guidelines to better understand how to calculate your car insurance rates—and how to get the best deal:

    Age ain’t nothing but a number, except when it comes to your car insurance rates.
    If you’ve driven for more than a decade, you may have noticed that your car insurance rates automatically dropped at the age of 25. DMV.org confirms,

    “As car insurance companies calculate your premiums, they may place a large stock in your age if you or another driver in your household is under 25 years of age or over 70.”

    Sadly, this is not age discrimination. It’s all part of the car insurance biz. Car insurance providers base their rates on solid statistics that indicate younger and older drivers are more likely to get in accidents.

    New drivers and teen drivers have been proven more dangerous on the road; the accident-related death rate per mile in the 16-to-19-year-old age bracket is three times higher than a 20-year-old driver.

    Car insurance rates are likely to decrease with age, until you hit the cut-off age of 70:

    Car Make/Model

    This one is simple: Expensive cars cost more to replace in an accident.

    If you’ve recently upgraded to a new vehicle, you can expect a car insurance hike to follow. If you want to save money on car insurance online, consider trading in your brand-new car for an older (and less sporty) model.

    Adding a teen on to a car insurance policy can hurt your wallet.

    Fortunately, by the time they make it to college, you may be home free. Personal finance strategist Shannah L. Compton estimates that, “You can save as much as 10-20% off your rates if your kid decides to go to a college that is 100 miles or more away from your home.”

    Credit Score

    Why on earth would your credit score matter to your car insurance provider?

    In a nutshell, your credit history reflects your ability to pay on time. Insurance providers can use credit score data to determine rates in all states, except California, Hawaii, and Massachusetts. Your credit score is likely to reflect your car insurance rate when moving up or down. Excellent credit can lower your premium by more than 30%.

    Coverage Type

    Liability car insurance is the least expensive coverage option required in most states.

    Liability coverage will cost less than full coverage insurance and may be a better choice for an older vehicle with a lower value. However, your lender may require you to carry full coverage insurance to protect the value of your car if you are still paying off a loan.

    Full coverage, or comprehensive coverage, may include a number of policy customizations that depend on provider, such as collision, medical payment, custom parts and equipment, rental reimbursement, roadside assistance, and loan payoff coverage.

    Driving Record

    One car insurance risk factor within your control is your driving history.

    We all make mistakes, but it is to your advantage to keep your driving record as squeaky-clean as possible. A reckless driving ticket can increase car insurance rates by up to 22%; a first time DUI offense may result in a rate hike of 19%; a seemingly minor infraction like a speeding ticket 1-14 miles over the speed limit could increase rates by up to 11%.

    Driving Distance

    When in doubt, carpool on your commute!

    Not only does carpooling benefit the environment and reduce wear and tear on your vehicle, but taking public or alternate transportation instead of driving to work could lower auto insurance rates.

    A one-way commute of 3 or fewer miles falls into the leisure driving category and will not affect rates; a one-way commute of 4 to 9 miles could increase auto insurance rates by several dollars; a significantly longer one-way commute of 20 miles or more could add $10 per month onto your policy.

    Women are statistically seen as safer drivers.

    Men may pay an estimated $15,000 more in total lifetime car insurance than women, when similar age and income levels are factored in. The playing field is leveled when you consider that women are likely to pay more than men for health insurance on average.

    Having a Baby

    Babies are expensive, but they may prove beneficial to your car insurance rates.

    Parents are expected to be safer drivers and may trade in a sporty car for a minivan. This new practical driving attitude—and a car with a better safety rating—could reward you with lower auto insurance rates.

    Insurance Provider

    Every auto insurance provider is different.

    Using their own specified criteria, each insurer will calculate car insurance rates based on preferred data and company claim history. Again, car insurance rate calculations will vary by provider based on multiple risk factors, making it imperative to compare quotes before signing on the dotted line.

    Lapse In Coverage

    Here’s another reason why it never pays to drive uninsured:
    Even a small lapse in coverage can affect your car insurance rates.

    It may seem like a good idea to save money in the short-term by neglecting to renew your policy, but keep in mind—your next insurance provider will look at your coverage history when calculating your premium.

    You could be labeled a high-risk driver for letting coverage lapse, indicating that you drove uninsured. A high-risk driver label means high-dollar coverage.

    You’ve already learned that car insurance rates can vary drastically by state.

    Yet even if you reside in an inexpensive car insurance state, your regional location could affect your rates. Regional risk factors are based on the risk of accident. If you live in an urban area with high-volume traffic and a high crime rate, you can expect to pay more compared to drivers in rural areas. Your zip code makes a big difference. The actual state you live in is a big factor as well. New Jersey, California, Florida and Texas are all in the more expensive tier of states. While New York, Illinois, Ohio and Arizona are in the bottom half of states.

    Marital Status

    Married couples are expected to combine car insurance policies, which automatically yields discounts and cheaper rates. If you decide to buy a house and bundle your homeowner’s and auto insurance, look forward to an even better deal.

    Six-Month Policy Prices for a Married Couple

    Husband alone

    Wife alone

Quotes are based on 25/50/25 liability protection with comp and collision coverage with $500 deductibles. Both drivers were rated for their own 2010 Toyota Corolla LE’s. Rates are based on the 90039 ZIP code of Los Angeles.

Number Of Drivers

Adding new teen drivers to a policy can increase rates, but there’s a catch.

Teen drivers bundled onto a parent’s car insurance policy may be eligible for good student discounts. Some insurers provide up to a 20% discount for a student driver with a B grade average or on the Dean’s list.

For new drivers, a clean driving record is more important than ever as traffic tickets can cancel out a good student discount. As stated above, bundling experienced drivers in the same household on a policy, such as after marriage, can lead to a rate decrease.

  • Good
    Student Cost
  • Average
    Insurance Cost
  • Difference
  • % Excess Cost

Occupation

Did you know that some careers have a statistically higher car accident risk?
According to DMV.org, if you’re a doctor, lawyer, business executive, architect, salesperson, or real estate agent, you may pay the price in higher car insurance rates. These career fields are statistically linked to lack of sleep, high stress levels, and working overtime, which can cause car accidents.

5 Ways to Reduce Your Car Insurance
Rates Today

Compare, compare, compare. This cannot be over-stated. Every insurance provider uses their own formula to calculate car insurance rates. You never know how much you could save—or spend—until you compare providers and crunch numbers.

Drop extra coverage.If your car has decreased in value, paying extra for collision coverage may no longer be necessary. At the very least, consider cutting policy perks you don’t need, like roadside assistance.

Perfect the art of negotiation. When comparing insurers, it never hurts to leverage one quote against another. Ask specific and pointed questions to whittle down car insurance rates: How much can I save by bundling auto and homeowner’s insurance? How much can I save by paying my annual premium upfront? Can you beat this insurer’s rate quote?

Ask for discounts.The squeaky wheel gets the grease, as the saying goes. Ask regularly about discount eligibility, which may apply to in-vehicle anti-theft devices, good students, seniors, low-mileage drivers, and more.

Raise your deductible.Your deductible is the amount you are responsible for paying when you file a claim. If you can set aside a chunk of change and increase your deductible, do so. Agreeing to pay $1,000 instead of $250 out-of-pocket will lower your annual premium significantly.

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