When shopping for different insurance policies, it can seem like the pricing is completely random, but this isn’t entirely true. While insurance quotes will change from person to person or even for the same person but in a different period in their life, there are reasons for the changes and seeming randomness of the quotes.
Here are a few factors that go into insurance quotes.
- Risk potential: The main factor that goes into insurance quotes is the risk potential. If you or your situation seems a greater risk or liability to the insurance coverage, they will charge you more for your insurance policy because they expect you to make more insurance claims. If you seem to be less of a risk or liability, you will likely receive a lower quote.
- Lifestyle: Your lifestyle will also be a factor in your insurance quotes. Insurance companies will look at your driving record and the miles on your car if you are requesting an auto insurance quote, for example.
- Location: Another factor that can go into insurance quotes is your location. If there is a higher crime rate in your location or if you aren’t close to any emergency services, for example, you may be considered a higher risk to the insurance company and receive a higher insurance quote. Even the local climate can potentially impact your insurance quote.
Insurance quotes and policies can be confusing. We at Morco Insurance Agency are happy to provide all the answers, information, and clarifications you need to find the right insurance policy. Contact us today to learn more.