Car Insurance Calculator: Determine the Cost of Insuring Your Car

June 13, 2013

Before purchasing a car, you should use a car insurance calculator to understand the total cost of ownership.

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If you are casually shopping around online for automotive insurance, a car insurance calculator can be a great asset to your search. The purpose of a car insurance calculator is to gather a rough estimate of what an insurance plan is going to cost you. Obviously, prices may change with different insurance companies, but you will be able to get a rough estimate.

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You can easily find a coverage calculator online, which can help you decide on the minimum requirements of being insured, or a more comprehensive plan. One useful calculator can be found at carinsurance.com. You will be asked a series of basic questions, including marital status, children and whether or not you rent or own a home. It gathers more personal information, such as education obtained, age and if you have health insurance. Obviously, you will be asked to fill out information about the car that you are trying to insure as well.

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The whole process doesn't take much more than ten minutes, and can save you time in the long run. When you obtain a free quote from individual insurance companies, you are essentially using a car insurance calculator. Some of the questions may be slightly different and you will probably be asked to create a profile with your email address. Also, you often have to input personal identification information, such as your social security number and address. If you are skittish about giving out your personal contact information, or like to do so as little as possible, it's probably a better idea to use a car insurance calculator on an independent website.

Calculating Premiums without a Car Insurance Premium Calculator

If you are unable to make use of a premium calculator but still need to keep within a budget, it is useful to know what aspects you need to take into account to calculate the premium.

  1. Previous Premiums. When you do not have use of a car insurance premium calculator, the ideal starting point is the figures for previous premiums. This will be the basis from which you can calculate what adjustments are likely to be made. If you do not have any figures for previous premiums, use an online quote form and input approximate details to obtain a quote figure.
  2. Claims. Be aware that any claim that you make will put you more at risk of getting high risk car insurance rates at renewal. Accordingly, take into account the number and types of claims that you have been paid over the course of the previous year as part of the car insurance premium calculator. The higher the payouts, the higher the renewal premium is likely to be. However, even a single claim is likely to increase the premium by a small amount.
  3. Market Conditions. A car insurance premium calculator must take into account market conditions. Pay attention to the financial news for any stories about the insurance industry and well as crime figures. Low car insurance rates will be scarce if insurers have paid out significant sums due to an increase in car crime.
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