Most people are quick to purchase the maximum collision and comprehensive coverage available to protect their new car. However, the costs associated with fixing or replacing even the most exotic car pale in comparison to the amount of money people will shell out to pay liability claims. It’s no coincidence that jury awards and settlements grow in proportion to a person’s net worth. Such is the mindset of our society today: What’s yours is mine if you’re dumb enough to leave yourself open for me to take it. While that may seem like a harsh commentary on society, it’s a game that plays itself out thousands of times each year, and the stakes run into the tens of billions of dollars.
For some people, getting an auto insurance quote is a lot like spinning a roulette wheel; you don’t know what will come up, and each time you spin it (getting quotes from different companies) it’s always different. Worse, there doesn’t seem to be any rhyme or reason for the quote. Yet, setting auto insurance rates is actually a fairly straightforward process as all insurance companies use, essentially, the same set of factors. So, it can be somewhat baffling when they come up with vastly different rates. Knowing how your auto insurance rates are set could help in working with insurance carriers in getting the best possible rates.