How car insurance pricing works
A premium is an insurer's prediction of what you'll cost to cover. These are the inputs that move it most, and the ones the Insura calculator asks about.
Six things that shape a premium
Location
Insurers look at claims, repair costs, theft, weather and traffic where the car is kept. State law also sets what coverage is required and which inputs insurers may use.
Vehicle
Repair and replacement cost matter most. Newer, more valuable and higher-performance vehicles generally cost more to cover for collision and comprehensive.
Driver profile
Age stands in for experience. The youngest drivers usually pay the most, prices tend to settle through middle age, and they often rise again for the oldest drivers.
Mileage
The more a car is on the road, the more chances there are for a claim. Low-mileage drivers often pay less.
Coverage
A policy that covers only what the state requires costs far less than one that also repairs your own car. Your deductible moves the price too.
Driving history
Tickets, at-fault accidents and major violations typically raise premiums for several years.
Coverage levels in the calculator
- State minimum
- Only the liability coverage your state requires.
- Liability, higher limits
- More protection for others; no cover for your own car.
- Full coverage
- Liability plus collision and comprehensive.
- Full coverage, high limits
- Higher limits plus extras such as rental and roadside.
Liability pays for injuries and damage you cause to other people. Collision repairs your own car after a crash. Comprehensive covers theft, weather, fire and similar events. A deductible is the amount you pay yourself before collision or comprehensive coverage applies.
How to use an estimate
- Run the calculator to get a range for your situation.
- Get quotes from several insurers for the same coverage and deductible.
- If a quote sits well above your range, ask the insurer which factor is driving it.
Insura's numbers are educational estimates, not quotes. The methodology lists every assumption behind them.