If you’re shopping for car insurance, you’ve probably heard about the importance of comparing quotes. But what exactly is a car insurance quote, and what factors are used to calculate one? A car insurance quote is an estimate of how much you’ll pay for a car insurance policy based on your personal details. Comparing quotes is the process of gathering multiple quotes from different carriers to see which one offers the best prices. Learn what you need to know about car insurance quotes, including how to find and compare them, below.
How Are Car Insurance Quotes Calculated?
Every insurer has a unique formula for calculating car insurance quotes, and quotes will vary by company even if you input the same information every time. While every formula is different, most insurers take the following factors into account when calculating your car insurance quote.
- Coverage limits. Before getting quoted, you input your desired amount of car insurance coverage. You need to select more than the minimum insurance requirements in your state, but any additional coverage after that is optional.
- Add-ons. Selecting optional add-ons, such as roadside assistance or rental reimbursement, raises the price of your quote by extending your coverage.
- Policy length. Your car insurance quote will vary based on the length of your coverage. You can decide if you want your policy to renew in six months or one year. Based on your selection, the quote might also tell you when you need to make payments and the estimated cost of your payments.
- Applicable Discounts. Quotes usually include a list of the discounts you qualify for that the insurer offers. Factors like driving record and personal information are used to determine your eligibility for any discounts.
- Deductible limit. Your car insurance deductible is the amount you agree to pay out of pocket after making a claim before your insurer covers the rest. Deductible limits range from $500-1000, with a higher deductible resulting in a lower quote and vice versa.
- Personal information. Your age, gender, marital status, education level, and location can affect the price of your car insurance quote, as insurers use statistics to assess your likelihood of making a claim.
- Driving record. Your driving record, including accidents, speeding tickets, and DUIs, all factor heavily into your final car insurance quote. Having no driving record—being a new driver—can also raise your quote as insurers see this as an indication of risk.
- Details about your vehicle. Insurers examine your car’s make, model, and any additional safety features to determine safety and the cost of any potential repairs. A luxury car with parts that are expensive to replace will increase the price of your quote.
- Credit history. Insurers check your credit-based insurance score to determine the likelihood of you filing a claim. This score reflects your regular credit score but is slightly different and includes other factors.
How to Find Car Insurance Quotes
If you’re shopping for car insurance, it’s important to compare multiple quotes to ensure you’re getting the most affordable coverage available. The easiest way to find car insurance quotes is by shopping for them online. Many carriers offer free auto insurance quotes via their website, mobile app, or phone. Quotes are meant to be low-pressure, and a quote isn’t a receipt or a commitment. If you decide to finalize your purchase, you confirm your coverage, provide additional details and a form of payment, choose your policy’s desired start date, and receive proof of coverage.
If you’re looking for affordable insurance, The General has a range of different policies for every driver, regardless of driving record or credit score. Get a car insurance quote in under two minutes or visit our blog to read more articles about everything insurance.
