Car Insurance Calculator

Q: What are the three coverage tiers?

The calculator prices two levels: Liability Only and Full Coverage . Liability only covers damage you cause to others. Full coverage adds collision and comprehensive to protect your own car too. A coverage need score of 45 or more, or a financed or leased car, gets full coverage. The recommendations still suggest higher liability limits when you have more assets to protect.

Q: What does Required mean vs Strongly Recommended?

Required means the coverage is either mandated by your state or required by your lender or lessor. Strongly Recommended means it is not legally required but skipping it could leave you with serious financial risk. Recommended means it is a smart choice for most people. Optional means you can skip it if you want to save money.

Q: What is the difference between comprehensive and collision?

Collision pays to fix your car after a crash with another vehicle or object. 1 Comprehensive pays for damage from things that are not crashes, like theft, hail, windstorm, flood, fire, or hitting an animal. 1 If you have a car loan, your lender will require both. 1

Car Insurance Calculator

Coverage

State average, 2024

Your estimate

Adjusted for

Liability

Collision

Comprehensive

Liability only

Liability row

Full coverage

Sum of the three rows

Introduction

Car insurance can be hard to figure out. There are many types of coverage, and the right choice depends on your car, your budget, and how much you have to protect. This free Car Insurance Calculator helps you see what coverage you actually need and how much it might cost. Just enter a few details about yourself and your vehicle, and the tool will give you a personalized plan. It shows which coverages are required, which ones are smart to add, and which ones you can skip. You will also get an estimated annual and monthly premium for liability-only and full coverage, next to your state's average premium, so you can compare your options side by side.

This calculator does not give you a real insurance quote. It starts from your state's average premium for 2024 and adjusts it for your age, your gender and your credit-based insurance score using published rate and claims data. Where your state's law does not allow one of those factors in auto rates, the calculator leaves it out. This tool gives you a clear starting point so you can shop for car insurance with confidence.

How to Use Our Car Insurance Calculator

Enter details about yourself, your vehicle, and your coverage needs below. The calculator will show you a recommended coverage plan, estimated annual and monthly premiums, and a breakdown of each coverage type you should consider.

State: Pick the state where the car is insured, or the countrywide average. The estimate starts from that state's average premium.

Driver Age: Pick the age closest to yours. Each choice is one of the sample drivers in West Virginia's rate survey, so it also carries that driver's marital status and mileage.

Gender: Select your gender, or prefer not to say to use the average of the two. Some states do not allow gender as a rating factor, and there the choice does not change the estimate.

Credit-Based Insurance Score: Pick where your score falls among all drivers, or leave it at average if you are not sure. Most states allow insurers to use credit as a rating factor.³ If your state does not, this field will not appear.

Vehicle Age: Enter how many years old your vehicle is. A new car can make gap or new-car replacement coverage worth adding.

Vehicle Value: Enter the current dollar value of your vehicle. On a low-value car you own outright, the calculator may suggest skipping comprehensive and collision.

Vehicle Ownership: Choose whether you own your car outright, have a loan, or lease it. Lenders and lessors usually require full coverage.

Household Assets to Protect: Select the total value of your savings, home, and other assets. Higher assets mean you need higher liability limits.

Dependents in Household: Choose yes if others depend on you. This raises your coverage need score.

Health Insurance Quality: Choose how strong your health insurance is. If you have weak or no health coverage, you may need more medical payments coverage on your auto policy.

Frequently Carry Passengers: Select whether you often drive with family members or other passengers. This affects medical coverage recommendations.

Risk Tolerance: Pick how much risk you are comfortable with. Choose max protection to get the most coverage or minimize premium to keep costs low.

How the Estimate Is Worked Out

The starting point is the average premium per insured vehicle in your state in 2024, which the National Association of Insurance Commissioners (NAIC) works out as written premium divided by written car-years for each coverage.⁶ Liability there includes bodily injury, property damage, uninsured and underinsured motorist, medical payments and personal injury protection.⁶ Full coverage adds the state's average collision and comprehensive premiums.⁶

The liability part is then scaled for your age and gender. Each year the West Virginia Offices of the Insurance Commissioner ask insurers to price ten sample drivers who vary only in age, gender, marital status and annual mileage, all insuring the same car at the state's minimum limits.⁷ The calculator takes each driver's average premium across the insurers that priced all ten, divides it by the average for the two 48-year-old married drivers, and applies that ratio to your state's average. That treats the state average as a 48-year-old married driver's premium, and assumes age and gender move prices in your state as they do in West Virginia.

Each coverage is then scaled for your credit-based insurance score. The Federal Trade Commission measured how much insurers paid out in claims for drivers in each tenth of the score range after allowing for other rating factors, and drivers in the lowest tenth cost between 1.70 and 2.20 times as much as those in the highest, depending on the coverage.⁸ The calculator uses those relative claims costs, scaled so that an average score changes nothing. They measure claims rather than prices, so the result is an estimate of the pattern, not a rate any insurer charges.

State law can take a factor out. California, Hawaii and Massachusetts do not allow credit information in auto rates.³⁹¹⁰¹¹ Maryland limits a credit discount or surcharge to 40%,¹² and Utah lets credit information only lower a premium.¹³ Hawaii and North Carolina do not allow rating by age or gender,¹⁰¹⁵ Massachusetts allows age only to lower rates for older drivers and does not allow gender,¹¹ and California, Michigan and Pennsylvania do not allow rating by gender.¹⁶¹⁴¹⁷ The calculator follows those rules for the state you pick, pricing every age alike where age is not allowed.

Car Insurance Coverage Calculator

Car insurance is a contract between you and an insurance company. You pay a premium, and in return, the company agrees to pay for certain costs if you get into an accident, your car is stolen, or your car is damaged. Virtually all states require drivers to carry auto liability insurance, and New Hampshire is the rare exception.² The minimum amount varies from state to state.

There are several types of car insurance coverage. Liability insurance pays for damage and injuries you cause to other people.¹ Collision coverage pays to fix your own car after a crash.¹ Comprehensive coverage pays for things like theft, vandalism, fire, or a tree falling on your car.⁴ Uninsured motorist coverage protects you if the other driver has no insurance.¹ Medical payments or PIP helps pay doctor bills for you and your passengers after an accident.¹

How much you pay for car insurance depends on many things. Your age, where you live, the type of car you drive, how much you drive, and your credit history all play a role. Younger drivers usually pay more because they have less experience. Sports cars and luxury vehicles cost more to insure than basic sedans. In some states, like California, Hawaii, and Massachusetts, insurers cannot use your credit score to set your rate.³⁹¹⁰¹¹

Choosing the right amount of coverage is important. State minimum limits are often too low to fully protect you. If you cause a serious accident and your insurance does not cover all the costs, you could be sued and lose your savings or home. People with more assets, a car loan, or a lease generally need more coverage. People who drive older, low-value cars they own outright may be able to skip collision and comprehensive coverage to save money.

A deductible is the amount you pay out of pocket before your insurance kicks in. A higher deductible lowers your premium but means you pay more when you file a claim.⁴ A lower deductible raises your premium but means less cost at claim time. Picking the right deductible is a balance between what you can afford each month and what you can afford if something goes wrong. Building a solid emergency fund can give you the confidence to choose a higher deductible and save on your monthly premium.

Formulas used

Liability Estimate ⁶

P_{\text{liab}} = A_{\text{liab}} \times r_{\text{driver}} \times c_{\text{liab}}

Driver Ratio ⁷

r_{\text{driver}} = \frac{\bar{P}_{\text{driver}}}{\tfrac{1}{2}\left(\bar{P}_{48,\text{M}} + \bar{P}_{48,\text{F}}\right)}

Collision and Comprehensive Estimates ⁶

P_{\text{coll}} = A_{\text{coll}} \times c_{\text{coll}}, \quad P_{\text{comp}} = A_{\text{comp}} \times c_{\text{comp}}

Credit Factor ⁸

c = \frac{R_{d}}{\tfrac{1}{10}\sum_{k=1}^{10} R_{k}}

Estimated Annual Premium

P_{\text{annual}} = \begin{cases} P_{\text{liab}} & \text{liability only} \\ P_{\text{liab}} + P_{\text{coll}} + P_{\text{comp}} & \text{full coverage} \end{cases}

Estimated Monthly Premium

P_{\text{monthly}} = \frac{P_{\text{annual}}}{12}

Coverage Need Score

S = \max\!\left(5,\; \min\!\left(100,\; 30 + \Delta_{\text{assets}} + \Delta_{\text{dependents}} + \Delta_{\text{passengers}} + \Delta_{\text{ownership}} + \Delta_{\text{health}} + \Delta_{\text{risk}} + \Delta_{\text{age}}\right)\right)

Frequently asked questions

What does the Coverage Need Score mean?

The Coverage Need Score is a number from 0 to 100. It measures how much car insurance protection you likely need based on your inputs. A higher score means you have more to protect, like bigger assets, dependents, or a financed car. The calculator uses this score to pick your recommended coverage tier.

What are the three coverage tiers?

The calculator prices two levels: Liability Only and Full Coverage. Liability only covers damage you cause to others. Full coverage adds collision and comprehensive to protect your own car too. A coverage need score of 45 or more, or a financed or leased car, gets full coverage. The recommendations still suggest higher liability limits when you have more assets to protect.

Is the estimated premium a real insurance quote?

No. The estimate starts from your state's average premium and adjusts it for your age, gender and credit-based insurance score using published survey and claims data. A real quote from an insurance company will look at your actual driving record, claims history, car, limits, deductible and other details this tool does not ask for.

What does Required mean vs Strongly Recommended?

Required means the coverage is either mandated by your state or required by your lender or lessor. Strongly Recommended means it is not legally required but skipping it could leave you with serious financial risk. Recommended means it is a smart choice for most people. Optional means you can skip it if you want to save money.

Should I get comprehensive and collision on an old car?

It depends on your car's value. If your car is worth less than about $3,000 to $4,000, the cost of comprehensive and collision coverage may be more than what the insurer would pay out if the car is totaled. In that case, you can usually skip it and save on your premium.

Does the type of car I drive change my premium?

Yes. Different vehicles cost different amounts to repair and have different accident and theft rates. A sports car is more expensive to insure because it is driven faster and costs more to fix. A basic sedan is cheaper to insure because repairs cost less and it is involved in fewer severe crashes. This calculator does not ask for your vehicle, because the state averages it starts from cover every insured vehicle; a quote for your own car will reflect it.

What liability limits should I choose?

Your liability limits should be high enough to cover your assets. If you have $200,000 in savings and home equity, state minimum limits of $25,000 will not protect you in a serious accident. The calculator recommends limits based on your household asset level. People with over $1 million in assets should also consider an umbrella policy.

What is the difference between comprehensive and collision?

Collision pays to fix your car after a crash with another vehicle or object.¹ Comprehensive pays for damage from things that are not crashes, like theft, hail, windstorm, flood, fire, or hitting an animal.¹ If you have a car loan, your lender will require both.¹

How does my deductible affect my premium?

A higher deductible means you pay more out of pocket when you file a claim, but your monthly premium is lower.⁴ A lower deductible means less cost at claim time, but your premium is higher. If you have enough savings to cover a $1,000 surprise expense, a higher deductible can save you money over time.

Why does being married lower my premium?

Insurance data shows that married drivers tend to file fewer claims than single drivers. Because of this, many insurers offer a small discount to married policyholders. The calculator has no separate marital-status choice: its age choices follow the sample drivers in West Virginia's survey, who are single at the two youngest ages and married at the others, so any marital-status effect is part of the age adjustment. Hawaii, Massachusetts and Michigan do not allow marital status as a rating factor.¹⁰¹¹¹⁴

What is uninsured motorist coverage and do I need it?

Uninsured motorist coverage pays your costs if you are hit by a driver who has no insurance or not enough insurance.¹ In 2023, more than one in seven drivers in the U.S. was uninsured.⁵ This coverage is strongly recommended for most people, especially if you have assets to protect.

Do I need gap insurance?

Gap insurance is important if you owe more on your car loan or lease than the car is worth. If your car is totaled, regular insurance only pays the car's current value.¹ Gap coverage pays the difference between that amount and what you still owe.¹ It is most useful on new cars and leased vehicles.

How does my health insurance affect car insurance recommendations?

If you have strong health insurance, you may not need as much medical payments or PIP coverage on your auto policy because your health plan already covers your medical bills. If you have no health insurance, higher medical payments coverage becomes much more important.

Sources

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