Three Reasons Why Your Auto Insurance Quotes May Vary Across Different Insurance Companies

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Three Reasons Why Your Auto Insurance Quotes May Vary Across Different Insurance Companies

9 June 2016
 Categories: Insurance, Blog

If you are hunting down a new insurance provider, you are likely to look for a few different quotes to see what you can get. Some people are surprised by how large the margin is between quotes from different companies. After all, you want the exact same insurance from each company, so why the big differences? The following highlights some of the factors that lead to the vast differences among your various quotes and why those factors affect your estimates.

Your Credit Scores

Many auto insurance companies now look at credit scores to determine your quote for insurance. The insurance providers can look at your score from any one of the three credit reporting bureaus, or they can look at all three. Usually, they will choose one credit reporting bureau and  use just that one to tabulate your score. If you can find out which credit reporting bureau an insurance provider uses, then you may be able to figure out which insurance providers will charge you a higher rate based on that specific credit reporting agency. The reverse is also true--if you get lower quotes based on the credit reports supplied by another credit reporting agency, it may be advantageous to buy insurance from providers who use only this particular credit reporting agency.   

Your Recent Traffic Reports

Some insurance providers have up-to-date access to your most recent traffic faux-pas, which could easily explain your higher quotes with these providers. Other providers do not have up-to-date access to your traffic tickets and accidents, so your quotes are much lower with them. Just be advised that if you sign on and purchase a policy with one of the providers that does not have access to your driving/traffic reports, your rates could go up when the provider finally gets word that you had a ticket or accident right before you purchased your policy.

Insurance Companies Have Different Rates for Any Teens You Have on Your Policy

A final factor, and certainly one that only affects you if you have teen drivers in the house, is the addition of teen drivers to your policy. Some providers will charge higher rates for adding your teen to your policy, even though you will be monitoring and teaching them to drive and your teen will need your car to accomplish this. Take heart--there are insurance providers who can offer reasonable rates for the addition of your teen drivers to your insurance. Contact a local provider, such as Martin Insurance Company, for further assistance.