Are your friend’s auto insurance rates cheaper than yours?
To gain a better perspective, when insurance companies are determining what to charge for auto insurance, they are essentially trying to calculate the cost of claims they will pay in the future. In trying to perfect this science, over the years, insurance companies have found a variety of factors they deem consistent indicators of future claim activities. Many are aware that age and driving record directly affect auto insurance rates; however, there are other factors used—many that people are unaware of. Territory, location, or area where the vehicle is garaged.
These are just a couple of factors many may not be aware of. Do note, not all insurance companies place the same weight on these factors. In fact, not all companies use the same factors when calculating their rates. This is one of the primary benefits of using an independent agent for your insurance needs. Independent agents represent several different insurance companies and therefore have the benefit of comparing rates for you to find the best rate for the best coverage.