Why Are Car Insurance Quotes So Different?

by Bobby MooreOctober 1, 2021, ,
Why Are Car Insurance Quotes So Different?

Car insurance companies are all different. They use different factors to determine your rates, and some of those factors can be hard to understand. Factors used include the driver's current insurance situation, driving record related to moving violations and accidents, and other insurance claims, such as those for weather-related damage.

Some of the factors are discussed below.


Insurance companies look at how likely it is that you will make a claim. The more claims made in your profession, the higher the premiums for everyone in that occupation. For example, if there are many claims made from people who drive taxis or delivery trucks, then taxi drivers and delivery truck drivers may pay a lot more than someone who drives a family sedan to work every day.

Current Insurance Situation

Car insurance companies will also assess your current insurance situation, and they’ll look at how many claims you have on file with them. If you have a history of filing multiple claims, this could affect your premiums’ price. The more claims you make, the higher chance they’ll increase their rates for future customers.

Previous Record

Car insurance companies will look at how long you’ve been driving, whether or not you have any accidents on record and what kind of vehicle you drive. They might even ask for a copy of your driver’s license to ensure that the information is correct. If there are any discrepancies in the information provided, it could affect your premium price.

Risk Assessment

Car insurance companies assess the risk involved by judging your field of work and other things. They will consider where you live, how many miles you drive each year, what type of vehicle you have, and how you keep it. This is called underwriting.

Garage Situation

If you are an office worker who drives to work every day but lives in the suburbs with no garage, your premiums will be lower than someone who works from home but has a sports car that they keep outside all day long. Car insurance companies are very particular about garage usage.

To learn more about different types of car insurance and their benefits, visit Lakeville Motor.

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