February 10, 2011

Why Auto Insurance Quotes Can Vary Greatly For A Single Vehicle

Finding a good rate for cheap auto insurance can be a challenge. Auto insurance quotes can vary by company, even when searching for a price for the same car. There are various factors which impact the price of a car quote, including gender, credit and the state you are driving in. Often times, cheaper insurance rates come about through discounts the company offers, such as a good driving record. By knowing what factors into the cost of insurance, one can find a cheap insurance rate.

Auto insurance quotes can vary by company based upon how the company does business. Some companies sell insurance through an agent or a broker, and the cost you pay for insurance includes commission to the agent. Other companies do not have agents and sell directly to the customer via the internet or phone. These companies are not necessarily cheaper, as their prices reflect marketing costs, as well as fees to operate the company. Depending upon your needs, working with an agent or the company directly could result in lower premiums.

Car insurance can vary based upon the importance that the company places on personal factors. Living in a different state, for example, can vary the cost of insurance. Gender can affect the price, as younger males typically pay higher premiums then younger females. Another important factor is credit. Depending upon your credit, you can pay a higher and lower premium. As not every company uses the same personal factors to establish the rate of auto insurance, the cost of insurance can be different with various companies. Not every company, for example, uses credit information to establish prices.

A cheap insurance rate can also be achieved through discounts offered by the different companies. If you car pool or use low mileage, there are companies who will give you a cheaper rate on insurance. With other companies, a lower insurance rate can be achieved by taking a defensive driver course. A great way to achieve a discount is to combine your auto insurance and home owner or rental insurance through the same company. Through the use of discounts insurance prices can range in price, even for the same vehicle.

When looking for auto insurance, remember to get multiple cheap auto insurance quotes. The cost can vary between companies based upon many factors. Sometimes it is cheaper to use an agent as opposed to going through a company that includes in their prices operational costs. Gender, driving record and credit can all impact quotes from different companies, depending upon how important these personal factors are. Furthermore, each company can vary on price based upon the discounts the company gives for things such as combining multiple insurance packages.