Why are prices so wildly different between car insurance companies?
I got a bunch of quotes recently and the best one is 30% to 60% cheaper than the others. Coverage is exactly the same for all the quotes. How does this happen? Is this normal?
As a matter of fact, yes, it’s common for car insurance premiums to vary significantly between companies. This is because each company uses their own unique formula to weigh various rating factors and settle on the cost of a policy.
Companies consider several factors to determine how much of a risk you pose. They don’t all use the same factors, and some may weigh certain factors more heavily than others. Common factors include:
- Your age
- Your car’s make and model
- Your driving record
- Your claims history
- Your zip code
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Will AAA unlock a car for my friend?
I'm the policyholder, but my friend locked her keys in her Honda SUV. If I call them for her, will they help?
Jul 22, 2021
How will my home insurance company take my deductible?
"I have a $500 deductible for my home insurance. If I file a claim, will my insurance company take the $500 out of the payout or will I have to pay the deductible upfront? "
Apr 13, 2021
What's the difference between bodily injury protection and medical payments coverage?
Do I need to get MedPay if I have bodily injury? I live in South Carolina and I already have bodily injury protection through my coverage.
Jul 01, 2021