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Why do insurance rates vary from carrier to carrier?

We all know there are certain factors between people that account for the differences in their auto insurance premiums. Some of those factors include, but are not limited to:

  • Age
  • Gender
  • Driving history
  • Make, model and year of vehicle

A better question, not as often asked, is: What accounts for the difference in premiums from one insurance carrier to another if they all take into account the above factors?

As an independent agency, we see the range of premiums from carrier to carrier first-hand on a daily basis since it’s our job to find the best rate for the coverage you need—which doesn’t necessarily mean the “cheapest” rate.

When different carriers present different premiums for the same person it is usually because each insurance carrier has a defined target market/audience of their own, that determines or represents their “ideal” customer. The more or less you are from the “ideal” customer will determine your rates from that carrier.

Some factors may include:

  • Your current insurance situation: Whether or not there is an existing policy
  • Driving record related to moving violations
  • Accidents and other insurance claims, even those related to weather damage and so on—it varies by carrier
  • Your Insurance Score

Because each carrier will have different algorithms, factors, etc. that determine how likely you are to file a claim based off of their “ideal” consumer and target market your premium will be different from carrier to carrier.

So, you really do not know if you’re getting the best rates until you have been quoted by an agency with multiple carriers and understanding of the coverage available from each of them, which is what we do for you!

For more information or a quote on your insurance call 334-263-5535 or get a quote here!