Car owners need insurance to drive legally – and to protect them financially after accidents. To get insurance coverage, you first need a car insurance quote. A quote is an estimate from an insurance provider for how much a policy would cost for your specific vehicle, coverage requirements, and driving history.

Comparing quotes is a crucial step to find the best rates for car insurance. Insurance companies want you to become a customer, so getting quotes isn’t too difficult. Let’s dive into the details! 

What you need to get a car insurance quote

Before you start, you should know what types of insurance coverage, coverage amounts, and deductibles you want on your policy. Then, you can start requesting quotes. 

Auto insurance companies will always ask for information about you and your car to provide an accurate policy quote. This includes: 

• Basic information about you and other drivers on the policy, including name, date of birth, and ZIP code 
• Driving history and information about any previous insurance policy 
• Information about your vehicle(s), including make, model, year, and approximate mileage 

When you accept a quote, you’ll also need to give the insurance company your driver’s license number and your car’s vehicle identification number (VIN).  

Not sure what all these car terms mean? Let’s look at an example. If you own a 2021 Honda Accord, the make is Honda, the model is Accord, and the year is 2021. As for the VIN, it’s like a car’s social security number – each car is associated with a unique number to help identify it. To find your VIN, look on the dashboard on the driver’s side or check for a sticker on/near the door. If you’ve picked out a car but are still in the process of buying it, the car dealer should be able to give you the VIN.  

How much does car insurance cost?

Car insurance premiums are unique for each person, so it’s impossible to give a blanket estimate of how much car insurance costs. The average cost for car insurance in the USA is $1,483 per year, but yours could be more or less. Car insurance companies use your age, driving history, insurance history and many other factors to determine the quote they give you. 

Which factors determine car insurance quotes?

Insurance companies use actuarial information to determine your quote. Actuarial information is statistics about insurance-related risks. When you request a quote from an insurer, they use software to compare the information you gave them to a table of actuarial data. The comparison lets them predict how risky you and your vehicle will be to insure. The riskier you seem, the higher your quote will be. 

Categories on the actuarial table include: 

• Age – people under 25 get into more accidents 
• Gender – women get into fewer accidents than men 
• Location – some cities and neighborhoods have higher rates of accidents, vandalism and theft 
• Driving history – people with violations on their driving record are more likely to crash 
• Annual mileage – higher mileage means more driving, and thus more chances for an accident 
• Vehicle details – a car’s make, model, safety features, and age all affect its reliability and safety 

Insurers look at all this information, plus other factors, to create an accurate policy quote customized to you. 

How much is the average auto insurance quote?

The average car insurance quote is $1,483, the same as the average annual cost of car insurance. However, quotes vary from insurer to insurer. Your best bet to save money on a car insurance policy is to compare quotes from at least three insurance companies. An independent insurance agent can easily get you quotes from several different companies. Reach out to Surround Insurance today – our agents can help you find the best deal with a minimum of jargon.