FAQ: Why You’re Getting Different Auto Insurance Rates for the Same Vehicle

Are you thinking about getting car insurance? If so, you’re probably thinking about dipping your toes into the whole venture by doing some searching online. You may be surprised to find that you can get different car insurance rate ranges for the same vehicle.

FAQ: Why am I Getting Quoted Different Rates?

There are two main ways you’re probably using to search for auto insurance rates: through a broker, and online. In order to understand why you’re getting different quotes, you’ll have to understand the basic processes involved in both.

Using an Auto Insurance Broker
When you use an auto insurance broker, odds are that they are using a database and their relationships with different companies to find you the best rate they can. After all, they are paid by the insurance company and you do not owe them anything for their services. Depending on how good their systems are and how strong their relationship is with certain companies, the result is a difference in rates for you.

Using Online Insurance Quotes
The more common way people are searching for car insurance these days is online, where filling out a single form can yield multiple insurance rates from different companies. When you search online and get different quote ranges for the same car, you’re seeing different online quote generators looking at your car from different angles and through aspects and rules of different car insurance agencies. Let’s say that you put in your name, address, age, and make of your car. You could conceivably get back different quotes because some car insurers charge more for your age. Other car insurers could charge more or less depending on the number of years you’ve been driving. You can also get different quote ranges because car insurance agencies charge more or less for your location: if they think the area is less safe, for example, they could charge more for your car insurance. Conversely, if they think that the area where you live is safer than most, they could quote you a lower rate because your car is seen as safer in your neighborhood.

As you can tell by now, some insurance companies put an emphasis on different factors when determining their risk assessment model, and this ultimately means you’ll have to compare insurance rates to get the best deal. Sometimes getting different rates can be a good thing.Be sure to consult with auto insurance experts if you still have any questions.