Best Cost Car Insurance

Why do car insurance companies have such huge differences in premiums?

We have 3 vehicles and 4 drivers. All drivers have clean driving records. 2 of the vehicles have full coverage and the other has liability. Allstate is charging us $1300.00 for 6 months. I have been shopping around and independant would only charge $550.00 for 6 months for the same coverages. I have other quotes from other companies that are approximately $700.00 for 6 months. Farmer's Insurance is the most not cheap. They want $1500.00 for 6 months. Why is there such a difference in premiums?

Public Comments

1. Some insurance co. have different starting rates, a lot of co. don't order MVRs and assume perfect household driving history, some co. use credit scores before quotes, some after issuing. Some co. give you a one time discount. Some co. are sneaky, some are just more expensive. You can call each co and ask how they are rating. I would stay away from the smaller co. The standard life of an insurance co is 10 years. And subsodizing insurance is more likely with lesser co which might cause higher rates. The more established co can give more individual risk rates. Plus they are more likely to be more accomidating in the event of an accident. USAA and Gieco are number ones. I'd get some more info on the companies you are looking at. I always think about what other things are offered. I'd rather pay $100 more a 6 months to an established co whom Im intrusting to INSURE my assets than pay less for a local agent who's down the street like "Joe's insurance". A good website is http://www.usaaedfoundation.org/ >cick insurance>auto insurance>How premiums are determined later check out 'selecting an insurance company' even if you're not eligible for USAA you can still access this website for some useful information. Also check ambest.com for consumer reporting.
2. In a word Greed. Some insurance companies, like Farmers Insurance, are only in it for the money. They can care less about the customer.
3. they rate policies in groups, or tiers. You'll want to research this some more.... http://www.surveyland.org/jump.php?link=insurance Have a nice day.
4. Mainly - because different companies provide different coverages for you. If you are more worried about insurance price - try this company - http://autoinsurance.maclenet.com I personally use their service – its a cheapest insurance for my car.