Why Am I Getting Different Quote Ranges for the Same Car?

If you’ve ever searched auto insurance premiums with different companies, you may have noticed that you get different auto insurance quotes for the same vehicle. So what exactly determines the premium amount for a car? To understand, it’s important to take a closer look at how insurance companies view premium prices.

Determining Premiums

You’ve probably asked this question a few times as you’ve searched around for various auto insurance premiums only to find that you see differences of hundreds of dollars between the companies you’ve looked at. So what’s with them? Basically, they can determine their own rates based on a number of factors, which is why you can enter the exact same vehicle information and find a number of different quotes.

So what affects auto insurance rates among various companies? Here’s a short list of what can make the difference in a higher or lower premium depending on the company:

  • Your age. Some companies hold more stock in your age when determining what auto insurance premiums they will dish out. Typically, the older you are, the lower your premium will be. And if you’re under 25, you’re probably going to see some rates that are pretty hurtful to your wallet.
  • Your credit. Another factor that can make a difference is your credit rating, as well as individual items listed on your report. The difference is, some companies don’t run your report information while others make it their determining factor.
  • Driving record. Points on your driving record can make a difference in your quote. However, not all companies view your points in the same way. Some give discounts for a good driving record, while others do not. Seeing a difference in your price could very well mean a difference in how your driving record is valued.
  • Generic vs. Specialized Quote. For those companies that look very specifically at your personal details (driving record, credit, age) to decide on a quote for you, you may see that if you receive a lower quote, it’s because they’ve given you a generic quote based on not having details that could raise the price later.

Receiving different quote ranges when searching for auto insurance premiums can be very confusing when you’re trying to insure the same car. But now that you know what affects auto insurance rates and why companies offer different rates for the same vehicle, you can make a better choice.

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