Question: Is there a big difference amongst most auto insurance agencies? I am talking about the larger ones as I wouldn’t do business with small insurance company. Thank you for your advice.

Answer: There definitely are differences between many auto insurance agencies. If you’ve ever shopped for auto insurance you’d know that many times quotes from different companies can differ by hundreds of dollars.

The reasons for these differences are based on the following factors:

• Differences in statistical models
• Discounts offered
• aggressive sales
• inflated premiums

These four differences alone could mean a big variation in the prices you see. Many insurance companies will have similar rates and this is one of the reasons people hate to comparison shop for a quote. They feel it is a waste of time, but it could be the very next company was going to be one that offered a discount.

Finding the hidden discounts in the insurance market can make a very large difference in the price of your monthly premium, so it is well worth the extra effort.

The auto insurance agencies do not work together to set a rate and that is a good thing. It is free market capitalism at its finest…except for all of the regulations.