A car insurance calculator is a handy online tool that consumers can use to get connected with car insurance companies, acquire quotes and determine the type of coverage they desire. Because car insurance rates vary a lot and are dependant on numerous variables a calculator for car insurance can be very helpful.
Not all free car insurance calculators are the same and consumers need to understand that along with providing them with information they are also tools that insurance companies use to generate more sales. There’s nothing wrong with an insurance company trying to connect with new customers. In fact, sites that offer calculators are creating a competitive marketplace that favors the consumer, as insurance companies vie for business by offering rates that can easily be compared to those of other companies.
Benefits of Calculators
Auto insurance calculators are useful for many reasons. A quick checklist of benefits includes:
- Rates specific to the state in which you live.
- An overall view of rates in relationship to criteria specified by you.
- The ability to compare rates between companies.
- The opportunity to compare rates by changing your coverage.
- Best rates available, as companies compete for your business.
What Affects Your Rate?
Rates are affected by numerous variables. Some of which you can control and others of which you have no control over at all.
Variables that affect rates include:
- Your age and sex
- The state in which you reside
- Driving habits
- Length of commute
- Number of miles on your car
- Average miles driven per year
- Number of vehicle accidents
- DUI convictions
- Moving violations such as speeding
- The make, model and year of your vehicle
Other factors include how many drivers are in your household and the age of each. If you add a teen driver to your car insurance policy, your rates will go up quite a bit since they are such a poor risk.
The other things that will greatly affect your rate is the coverage you elect and your deductable. If you choose a $250 deductable, you’re going to pay a lot more than if you decide to go with $500. The higher the deductable the lower the rate.
With other aspects of coverage, the more coverage you elect the more your rate goes up. As an example if you choose $250,000 in liability, you’ll pay a lot more than if you go with $100,000. Why would you choose to go pay for more liability coverage? There are a few reasons.
First, there’s peace of mind. The fact is in an accident you can find yourself liable for $500,000 or more in damages, which might include destruction of property and injuries to those in your vehicle or other vehicles, including pain and suffering and hospital bills.
Thus, although it’s cheaper to go with less coverage, consumers need to realize that doing so can put them in greater jeopardy in the event of an accident. That’s one thing a car insurance calculator won’t tell you. It will simply inform you of the price and not the possible positive or negative effects of choosing a specific level of coverage.
Car insurance calculators that ask you to input as much relevant criteria as possible will give you the most accurate quotes and estimate your insurance rates. It will take a few more minutes to use these calculators but in terms of results, they’re worth the time.
The first thing you’ll be asked for is your zip code. After that, you’ll be asked a series of questions in relationship to establishing who you are, such as a single, male age 21 years old or a married male age 42. By answering these simple, factual questions, you’re beginning to fill in the blanks of your insurance profile in order to get quotes that are specific to your situation.
You’ll also be asked to give your email, street address and phone number. This allows insurance companies to contact you and also enables the site to immediately send results to you via the web.
You’ll then be asked various questions relating to your lifestyle, driving record, the vehicle you drive and amount of coverage you’re seeking. Some calculators will have an icon that you can click to get more information on a question, enabling you to answer it with accuracy.
Once you input the information, you may receive quotes immediately, but more likely information will be emailed to you. Both may occur. Usually, consumers receive three to five quotes and/or companies to contact.
Insurance Company Contact
You will be able to contact insurance companies if you’re interested in their coverage. If you do so, you should have questions related to your coverage. You may want to get quotes adjusted to more or less coverage or discuss multiple policy discounts that are given when a client purchases more than one type of insurance from the same company. Also, this is a good time to see if there are any additional discounts for which you may qualify such as safe driver, AARP or AAA.
How to Shop Online with a Calculator
A few quick tips will help you make the most out of using an online car insurance calculator. These include to:
- Have all necessary information handy, including that on your vehicle(s), driving record and coverage specifications
- Be honest regarding your driving record
- Be accurate regarding miles driven per year and other driving habits.
- Know and offer necessary information about other drivers in your family, such as birth date, driving record, etc.
When it comes to your state coverage requirements, there are 3 main categories to examine. They are Bodily Injury, Property Damage, and Under/Uninsured Motorist Bodily Injury. These are the areas where states differ in the amount of minimum coverage that is required for each of the 3 areas. The higher the coverage the higher your monthly premium will be but securing your financial well-being will be in a lot better position in the result of an accident.
The Choice is Yours
When you calculate car insurance online, you will now have the power and you’ll be able to compare quotes and coverage’s and be better informed. There’s power in information and the more specific the information the better. Then the choice is yours regarding which car insurance company you chose and the type of coverage you elect. A car insurance calculator is a huge help to consumers everywhere. Use one to get the best rates possible. If you need help with other financial related calculators.