UPDATED: Nov 1, 2016

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Written By: Jeffrey JohnsonReviewed By: Sara RouthierUPDATED: Nov 1, 2016Fact Checked

Many people might be intimidated by the thought of trying to use the car insurance calculator, thinking that it is probably complicated and time consuming. But, nothing could be further from the truth. These calculators are actually quite simple to use and should be viewed as a handy and useful tool to save you money.

For nearly every car insurance calculator, the information you need will be similar and very basic. The car insurance calculator will ask you: 

Car Insurance Calculator Online

  • Your location (city and state)
  • Your type of car
  • Your income and assets
  • Occasionally, your occupation will be asked, but not always

Why They Ask for Your Location for a Basic Calculation

To get the best insurance price for your needs, you need to enter your state information. There are several reasons why you enter your state’s information for a realistic quote:

  • Each state has different minimum requirements for insurance.
  • Different insurance companies provide insurance to each state, which may influence the price that you have to pay.
  • Each of those insurance companies may have different types of discounts that you may qualify for, which may seriously lower your price.

Until you are ready to actually buy a policy, you will not need to enter your full address, which protects your identity.

Why the Type of Car Matters

The insurance companies consider certain cars a bigger risk than others and will rate insurance on those cars at a higher price than on others. There are other ways that the type of car that you own and drive can influence the cost of insurance:

  • The higher the value of the car, the higher the insurance cost is.
  • Certain types of cars made need specialized types of insurance coverage (vintage cars, restored cars).
  • Having certain features on your car, including alarms, anti lock brakes and others, can lower your insurance cost.

Certain types of cars more likely to be stolen than others, and those cars are often rated at higher insurance costs than others. The list changes every year based on criminal activity for the previous year.

What about Your Income and Assets?

There are a number of reasons that your income and assets are asked. The better your income and credit rating, the more likely you are to qualify for lower insurance costs. The insurance companies may also be interested in your income level and your other assets for a number of other reasons including:

  • To generate quotes for other types of insurance. People who own their homes or have higher income are more likely to be interested in other types of insurance, including for their homes, life and other high ticket items.
  • Higher income people are also likely to be unconcerned with the price of their deductible, opting for better coverage instead.

Will They Ask about My Occupation and Why?

The auto insurance calculator may ask about your occupation. The job that you have may impact how you drive your car, how many miles you put on it and where it will be parked.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Reviewed by Sara Routhier
Director of Outreach Sara Routhier