Car insurance rates are rising in 2022 and many people are looking to get the best prices on car insurance. But rates can vary widely based on where you live, how old you are, whether you own a home, and other factors. so where do you start? How do you know if you’re getting a great rate?
carinsurance.com’s auto insurance estimator can estimate your average monthly rate for three levels of coverage and give you a recommendation on which is best for you in just a few minutes, without providing any personal information.
Whether you’re shopping to insure a new car, looking for insurance for a teenager, or trying to find auto insurance prices in different states, getting auto insurance estimates and comparing quotes could save you hundreds of dollars each year.
carinsurance.com’s car insurance calculator is a great place to see how much your car insurance will cost.
how do you estimate the cost of your car insurance for 2022?
With the Auto Insurance Estimator, in five easy steps, you’ll see prices for three levels of coverage based on your personal profile. After getting an initial estimate, be sure to compare auto insurance quotes before making any major changes. this way you know what your premium will be and can budget accordingly.
what information do I need to enter into the insurance cost estimator tool?
Don’t worry, you won’t have to provide any personal information to use the car insurance calculator. you just need to enter some details:
- zip code
- current insurance status
- vehicle ownership status
- owner or tenant
- car type
- age and years of driving experience
- geographical location
- marital status
- handling log
- annual mileage
- credit history
- selected coverage, limits and deductibles
- minimum state liability only: $511
- liability (limits 50/100/50): $637
- full coverage (limits 100/300/100): $1,682
- Ask your insurer about discounts like good/safe driver, good student, anti-theft devices, driving lessons, loyalty, multiple vehicles, combination and more.
- keep a clean driving record and verify that your driving record is accurate, making sure to correct any inaccuracies.
- Check safety ratings and buy a vehicle that insurance companies consider safe.
- maintain good credit and work diligently to correct any irregularities on your credit report.
- Install security and anti-theft features in your car.
- Maintain a good insurance record by avoiding unnecessary auto insurance claims.
what factors do companies use to estimate auto insurance?
A variety of qualifying factors determine how much you’ll pay for auto insurance. which factors are used depends on state laws and the internal guidelines of the insurers you receive quotes from and how they calculate auto insurance rates.
In general, the main rating factors that affect the calculation of auto insurance rates include:
How much car insurance do I need?
Each state requires you to have auto liability insurance to drive legally. however, the amount paid by state-mandated accident liability insurance may not be enough to cover expenses, leaving you to pay the difference.
State-mandated liability insurance does not cover your own car, so you may want to increase your protection to higher bodily injury liability limits and higher property damage liability limits: $100,000 per person, up to $300,000 per accident for medical bills for those injured in an accident you cause, and $100,000 for property damage you cause (written as 100/300/100).
Finally, decide what deductible you can afford. One of the best ways to save on car insurance costs is to increase your deductible for collision and comprehensive insurance. But remember, if you have a claim, that deductible will be your out-of-pocket cost to repair or replace your car. if you have more than one claim, you’ll have to pay the deductible each time, so choose an amount you can afford with your savings.
“Regardless of whether you want full coverage or the cheapest minimum amount, it’s a good decision to shop around,” says david c. Marlett, managing director of the Brantley Risk and Insurance Center at Appalachian State University. “Insurers have very different pricing models and it’s often surprising how much they can differ from each other. this is a quick and easy process that can easily save you hundreds of dollars in premiums.”
more information: how much car insurance do I need?
how much does car insurance cost?
According to an analysis of carinsurance.com data from 2022, the average rate for car insurance is as follows for the average annual car insurance premiums for a 40-year-old male with a good insurance score (no violations ):
*data analysis includes auto coverage by ZIP code, a 2022 vehicle, and for a driver with a 12-mile trip and a full coverage policy.
Where do you find the best and cheapest car insurance?
Finding the right insurance company can be a challenge. You want an insurer that offers great rates, but you also want one that is financially strong, handles claims quickly and fairly, and provides excellent customer service.
“Getting auto insurance estimates from multiple insurers will help you lower your insurance rate. It can also help you uncover previously unmet insurance needs,” says Siwei Gao, Thomas and Rebecca Coffey Professor of Insurance Studies at Eastern Kentucky University.
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“Many people set up their auto insurance to automatically renew in the event of an involuntary policy expiration. this is smart, with a caveat: you may forget to reevaluate your insurance strategy for a long period of time. it’s a good idea to be reminded to get an auto insurance quote annually.”
car owners, erie, state farm, geico, travellers, american family, worldwide, progressive, allstate and mercury have been ranked among the best auto insurance companies. usaa is also ranked as a top insurer, but the company offers coverage only to military, veterans, and their families.
Check out our detailed guide to who has the cheapest auto insurance for 2022
what are the types of car insurance?
To correctly estimate auto insurance costs, you need to understand that there are different coverage options. Here’s a breakdown of the three main types of car insurance so you can start figuring out what kind of coverage you need.
civil liability insurance
Liability covers the property damage and medical expenses of others if you are found at fault in an accident. Many states’ minimum liability requirements are so low that if you were in an at-fault accident, you could be vulnerable to lawsuits to recover damages.
Collision covers damage to your car, regardless of fault, and pays up to the actual cash value of your car if it is determined to be a total loss after a car accident. also, collision coverage does not cover weather events, theft, or if you hit an animal while driving.
all risk insurance
Comprehensive coverage against theft and damage to your car due to hail, floods, fires, vandalism and animal accidents. Like collision coverage, this will pay you up to the value of your car at the time before the incident.
loretta worters, vice president of the insurance information institute, says that beyond general liability or comprehensive auto insurance, consumers should consider getting an umbrella policy, which is additional insurance that covers foreign items.
“Comprehensive insurance may provide coverage for injuries, property damage, certain lawsuits, and personal liability situations. In most cases, personal umbrella policies are available in million-dollar increments, from $1 million to $5 million,” says Worters.
FAQs: Auto Insurance Estimates
how does your car affect the estimated cost of your auto insurance?
Auto insurers track which cars are involved in the most accidents and have the worst injury records. Those factors affect the cost you pay for liability insurance, which covers damage you cause to others, not damage to your car.
Insurers also know which cars are expensive to buy, expensive to repair, or stolen most often, and those factors increase the cost of comprehensive and collision coverage.
calculations on the risk of a given car are made independently.
For example, if you are an inexperienced driver in a car with a poor claims history, you are penalized twice. a more mature driver in the same car would pay a surcharge for the car, but not one for inexperience.
Below, we have average car insurance rates by car type.
how does your location affect car insurance price estimates?
Auto insurance companies look at factors like the rate of stolen cars in your area and the number of cases of vandalism, claims, and fraudulent claims, which helps insurers discern the risk associated with insuring your car in that area. postal code.
all other factors being equal, your zip code can change your rate by hundreds of dollars.
how does your age affect car insurance rates?
Car insurers penalize inexperience: the less experienced the driver, the higher the rates. That’s because, statistically, inexperienced drivers crash (a lot) and are therefore the riskiest category of drivers to insure, so auto insurance rates reflect this elevated risk.
Of course, the vast majority of inexperienced drivers are teenagers and under the age of 25. therefore, young drivers pay significantly more, overall, than older drivers. rates are cheapest for drivers in their 40s, 50s, and 60s, then go up a bit at age 70.
look: how to get cheap car insurance for young drivers with 6 tips from the experts
average car insurance premiums by seniority
If you maintain a clean record after age 25, rates generally stay relatively flat until you become an older driver, when accident rates rise and premiums begin to rise again. below you will find estimates of averages by age.
how does your driving record affect your insurance calculation?
Your driving record is paramount to an auto insurance company. Safe drivers get a discount from standard rates for maintaining a clean driving record. on the other hand, people who have a traffic violation (such as a speeding ticket or dui) or an accident on their motor vehicle record are more at risk and may face a surcharge on top of standard rates.
In general, a minor violation, such as a speeding ticket, can increase your rates, on average, between 26% and 43%. If you have a major violation like a dui, your rates can go up even more. The higher risk your auto insurer appears to be, the more you’ll have to pay.
how does your credit score affect auto insurance quote prices?
Insurance companies routinely check your credit score to create your premium, except in California, Hawaii, Massachusetts, Michigan, and Washington (effective up to three years after post-pandemic emergency declarations), where state law prohibits Let credit be a price factor. and in oregon and utah, policies cannot be canceled or renewed due to credit history.
Credit scores help insurance companies assess a potential customer’s level of risk during rate calculations. Research has shown that people with lower credit scores (generally under 600) are more likely to file claims.
read more about what a car insurance score is and why it matters
how do I choose an insurance company in 2022?
Compare auto insurance quotes on the same auto insurance coverage from at least three companies. When making these comparisons, Crash Network Analyst John Yoswick recommends keeping an open mind and looking beyond the larger, more well-known insurers when shopping for auto insurance.
“There are more than 200 auto insurers, and there’s often an opportunity to buy coverage from a smaller company based in your state or region,” he says.
request insurance quotes from at least three different insurers. Be sure to compare the same auto insurance coverage using the same liability limits, identical deductibles, and optional coverages when using a calculator or working with an agent.
In 2022, Carinsurance.com found that Progressive was the cheapest auto insurance company for full coverage insurance and Geico was the cheapest for drivers with speeding tickets, accidents, or bad credit.
how can you lower your insurance costs?
There are some easy ways to lower your car insurance premiums:
Read expert tips on how to lower auto insurance rates
carinsurance.com’s auto insurance estimator tool is based on 2022 data from Auto Insurance Average Rate Quadrant Information Services for nearly all zip codes in the United States with rates using a 2022 honda deal and data from 10 major carriers.
Custom Rate averages are based on drivers’ age and gender for the following coverage levels: State Minimum Liability, 50/100/50 and 100/300/100 Liability with a $500 deductible per comprehensive coverage and collision. hypothetical drivers have a good driving record and good credit.
– michelle megna contributed to this story.