There are many factors that determine the premium rates you get when requesting car insurance quotes. While insurance companies are regulated by state laws, their rates are not; this means that different companies will offer you different rates. Keep reading, and you will see why requesting and comparing multiple quotes can help you save tons of money.
How are auto insurance rates set?
Here’s a basic answer to help you understand how insurance companies set their rates; when you submit your application, a computer system sorts you into a specific group that matches the information you’ve entered. Once your specific group has been determined, your quote will inherit the set price for that group. What makes your quote completely different from others in the group, is the discounts that may apply for you, those will be subtracted from the standard group price. That’s basically how insurance quotes work.
Then why insurance companies have different prices?
Well, different companies have different methods, group prices and discount, that’s why their rates vary from one auto insurance company to the other. Each insurer has their own set of claim payments and expenses, and they set rates based on that.
What information affects my insurance quote?
Different states have different laws regarding the way insurers set their rates; here are some factors that will most likely affect your rates:
Why are insurance rates discriminatory?
Insurers are not allowed to base their rates on race or religion. But there are some factors that may seem unfair to you, such as your credit history, your home ZIP code, age, gender and marital status. These factors are considered differently by each insurance company, that’s why requesting multiple quotes will provide you with the lowest rates.
Where can I find the best free insurance quotes?
There are many trusted sources out there; one of the best ways to quickly obtain multiple-free insurance quotes is by using the www.freeinsurancequotesfinder.com website.