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There are many factors used as variables in the calculation, but every calculator generally uses the same formula. Here are some important points to give you ideas how auto insurance calculator works. Requesting data from insurance companies To generate proper estimation of premium fee, online insurance calculator gathers data from various insurance companies all over the country. A good calculator will keep on updating with the current price, available discounts, and types of coverage. Your personal information Information about your address will be used in several ways. First, it directly narrows down the choices of insurance companies listed in the calculator’s database. Based on your address, online auto insurance calculator will only generate result from companies available in your state. Second, it helps to determine whether your location has plenty of insurance perils or generally safe neighborhood. Car data sheet Car models greatly affect premium fee. Auto insurance calculator separate cars into many different categories; each category has its own characteristics to determine insurance cost. Some of the variables are based on statistics. For examples:
- Certain types of cars are stolen more often than the others, meaning the models have higher risk of theft
- Sport cars offer quick acceleration and high top speed, and therefore there is high risk of infraction especially speeding.
- Some models have higher rate of occupant injury in case of road accident.
- Luxurious cars are quite expensive to repair.
- Cars with good safety rating may reduce your premium cost.