I get this question all the time, why is the quote I am getting so different depending on the insurance company?” The reason for this is that some insurance companies do not want you. I know it is hard to be rejected, but like I said auto insurance is like a relationship, and sometimes they’re just not into you. Sorry. This goes back to the last post and how the insurance companies do not want to take on risk. Insurance companies have an appetite for the type of business they want, some companies will offer a better rate to younger individuals just starting out who may be getting their first car, in the hopes they will be with them for a long time after they start to expand the assets in their lives. Other companies want the family with the home, great driving record, two kids and great credit score in the hopes that they will have little to no losses and they can get the kids when they come of age. Each insurance company is different. Some want the same things and others want totally different things, but whatever their appetite it is always going to be focused on profitability of the company.
Now if you are wondering how you can tell what an insurance company’s appetite is, watch their commercials. If you see an ad with a kid just learning to drive, or mom and dad are buying that first car, the insurance company want parents with kids that are coming on to the policy for the first time. If you see a commercial with an older couple buying the car they always wanted and there are no kids in the picture, the insurance company is looking for empty nesters. If you look, the insurance companies are always telling you what they want. You can bypass all of that and go to an insurance broker, because their carriers will tell them exactly what they are looking for. I hope you do not feel bad, thinking the insurance company has all the power, because you as the consumer have a great deal of power as well in the auto insurance market, because without you there are no insurance companies.