Car Insurance Calculator: Estimate Your Costs

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How to Calculate Your Car Insurance Coverage Needs

A car insurance policy can consist of several components, and the first step to calculating how much car insurance you need is understanding the coverage types available and whether they’re required or optional.

Understanding How Much Car Insurance You Need

Some states, such as California, require only liability insurance. Others, such as New York, require additional coverage types. If you want coverage for your car, you’ll need to add optional coverages. To know for sure what your state requires, check out the minimum car insurance required in your state.

Here are the main types of car insurance and whether they are generally required or optional.

Type of car insurance	What it pays for and if required
Bodily injury liability	Pays for injuries you caused to others in an auto accident. Required in all states if you buy car insurance.
Property damage liability	Pays for damage to other people’s property you caused in an auto accident, such as another car, fence or building. Required in all states if you buy car insurance.
Uninsured motorist coverage (UM)	Uninsured motorist insurance pays for you and your passengers’ medical expenses if you’re injured by someone driving without liability insurance. UM limits usually match your liability limits. Required in some states and optional in others.
Underinsured motorist coverage (UIM)	Pays the medical bills of you and your passengers if the at-fault driver has insufficient car insurance to cover injuries they caused. UIM limits typically match your liability limits. Required in some states and optional in others.
Personal injury protection (PIP)	If you live in a no-fault insurance state, you use personal injury protection insurance to pay your medical bills related to a car accident, regardless of fault. PIP also covers other costs, such as lost wages and replacement services. Required in some states.
Medical payments (MedPay)	Medical payments coverage pays medical expenses for injuries to you and your passengers due to an auto accident, regardless of fault. Required in two states.
Collision insurance	Pays for damage to your car after a collision with another vehicle or object, like a pole or fence. Not required.
Comprehensive insurance	Pays car damages from specific events, including theft, fire, falling objects, hail storms, floods and vandalism. Not required.

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How To Choose the Right Amount of Liability Insurance

Beyond paying for accidental property damage and injuries you cause to others, liability car insurance also covers the cost of your legal defense and judgments and settlements if you’re sued because of an accident.

A general rule of thumb is to buy enough liability insurance to cover what could be taken from you in a lawsuit.

How To Read Liability Limits

Liability limits are written as a group of three numbers, such as 15/30/15, and break down to mean:

• 15 = $15,000 of bodily injury liability coverage per person
• 30 = $30,000 of bodily injury liability coverage per accident
• 15 = $15,000 of property damage liability coverage per accident

Buying only your state’s minimum liability car insurance could be a costly mistake because these amounts are usually inadequate if you cause an expensive accident. Limits of 100/300/100 or higher are recommended, so you’re less likely to exceed your limits.

Do You Need Collision and Comprehensive Insurance?

No state has a law requiring you to carry collision and comprehensive insurance, but if you have a car lease or loan, your leasing company or lender usually requires this coverage. Collision and comprehensive insurance are often sold together.

You don’t need to choose a collision or comprehensive amount—your coverage will be based on the value of your vehicle or the payout to you if your car is totaled. You only need to choose a car insurance deductible. This amount is subtracted from your payout if you make a collision or comprehensive insurance claim. Deductible choices typically range from $500 to $2,500.

Related: When To Drop Collision And Comprehensive Insurance

Expert Tips

How to Lower Your Car Insurance Costs

Jason Metz

Insurance Lead Editor

Michelle Megna

Insurance Lead Editor

Les Masterson

Insurance Editor

Compare Car Insurance Quotes

The best way to find a good policy at a competitive price is to compare car insurance quotes among multiple insurance companies. Rates can vary significantly from one insurer to the next because they assess risk differently. That’s why shopping around is one of the best ways to save money on car insurance.

Jason Metz

Insurance Lead Editor

Ask About Car Insurance Discounts

I recommend asking about all the car insurance discounts you may be eligible for, such as a good driving discount or multi-vehicle discount. Many discounts are applied automatically when you qualify. Others you’ll have to ask for because your car insurance company won’t know you’re eligible—such as a good student discount if you have a teen driver who has a B average or better

Michelle Megna

Insurance Lead Editor

Increase Your Deductible

You can save money by raising your car insurance deductible if you have collision and comprehensive insurance. Since your insurer will pay less if you file a claim, you’ll pay less in premiums. But be sure you’re comfortable paying more out of pocket if you file a claim.

Les Masterson

Insurance Editor

What Factors Impact Your Car Insurance Estimate?

There are several factors that auto insurers look at—from your age to the type of car you drive—to give you a quote estimate. Keeping a clean driving record, including avoiding accidents and tickets, leads to cheaper rates. Here’s how certain infractions can result in rate increases:

• At-fault accidents. Your car insurance rates go up after an accident 48% on average if you cause property damage. If there are injuries, it bumps up to a 49% increase.
• Speeding. Your car insurance rates go up after a speeding ticket 26% on average.
• DUI. Your car insurance rates go up after a DUI 71% on average.

Other common car insurance pricing factors that can impact a car insurance quote include:

	Your age Car insurance rates for seniors (those in their 70s and 80s) and young drivers in their teens and early twenties are typically high as these age groups pose a greater risk for accidents. Age is not a rating factor in California, Hawaii and Massachusetts. Related: How Age and Gender Affect Car Insurance Rates
	Driving experience The less time you’ve had behind the wheel, the more you’ll pay for auto insurance. Younger and inexperienced drivers are more likely to be in accidents, which results in higher car insurance rates.
	Your location Location-driven risk factors include accidents, theft, vandalism, other car-related crimes and claims, plus weather claims—such as hail or flooding—that occur in your area. The cost of vehicle repairs and medical care will also affect car insurance costs where you live. Related: Car Insurance Rates By State
	Your vehicle model Insurers analyze past claims for specific car models, including the cost of repairs and theft rates, which can impact the price of collision and comprehensive insurance. Expect higher car insurance rates if your car costs more to repair or replace. Related: Most and Least Expensive Cars to Insure
	Credit Insurers believe your credit-based insurance score relates to your likelihood of making an insurance claim. As a result, you can see a car insurance rate increase if you have poor credit. Credit is banned as a rating factor in California, Hawaii, Massachusetts and Michigan.
	Lapses in car insurance coverage If you have a gap in your car insurance coverage, you’ll pay higher rates than drivers who keep continuous coverage. Maintaining insurance shows stability, making you less of a risk.
	Coverage choices A bare-bones liability policy will cost less than full coverage car insurance. But the trade-off is that you’re left financially vulnerable if you cause a major accident, and you won’t have collision and comprehensive coverage for your car.
	Deductible selection Car insurance deductibles are associated with collision and comprehensive coverage. The higher the deductible you choose, the less you’ll pay because your insurer pays less for a claim when you choose a higher deductible.

ASK AN EXPERT

ASK THE EXPERT

Penny Gusner

Insurance Senior Writer

Ashlee Valentine

Insurance Editor

Amy Danise

Insurance Managing Editor

How Do I Estimate My Auto Insurance Cost?

          – Brian S., Athens, Georgia

The best way to get an idea of how much you’ll pay is to get several car insurance quotes. You can do this online at insurance company websites, or work with an independent auto insurance agent, who will be able to give you multiple quotes. Another way to estimate your cost is to use online tools such as our car insurance calculators.

Penny Gusner

Insurance Senior Writer

How Do I Get the Most Accurate Car Insurance Quote?

          – Cheryl R., Ames, Iowa

The best way to get an accurate quote is to provide accurate information about yourself and other drivers who will be on the policy. Fibbing or omitting information—such as leaving off a speeding ticket—will make your quote incorrect. If you buy a policy based on inaccurate details, the price will be recalculated once the truth is known.

Ashlee Valentine

Insurance Editor

What Is the Difference Between a Car Insurance Quote and a Car Insurance Rate?

          – Jessie J., Rolla, Missouri

Many use the words interchangeably, but there is a slight distinction between a quote and a rate. A car insurance quote is typically given rather quickly online or by an agent based on the information you provided. A car insurance rate is generally the final cost given after the insurer verifies the details you gave. If something was amiss, the rate could be different than the quote.

Amy Danise

Insurance Managing Editor

How to Save on Car Insurance

The very best way to save on car insurance is to shop around and compare car insurance quotes with multiple companies. We recommend getting quotes from at least three companies.

A national or regional insurer could be the cheapest car insurance company for you. Gather rate quotes from each so you can see who is priced best for your specific needs.

Methodology

We used data from Quadrant Information Services to find average rates in each state for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit and drivers caught without insurance.

Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:

• $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
• Uninsured motorist coverage of 100/300.
• Collision and comprehensive insurance with a $500 deductible.

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