By Cesar Diaz
You may have been referred to a certain auto insurance company that a friend got an excellent rate from. What is unknown to many is that a certain company may offer cheap auto insurance rates for one person but may not be so cheap for another.
Each auto insurance company targets a certain category of driver because an auto insurance company will target a category of drivers that have the lowest loss ratio; In other words, the category of drivers that the auto insurance company had to pay out the least amount of money for in terms of auto insurance claims. For example, auto insurance company A may offer excellent rates for drivers in the city of Orange because the money they paid out for residents of the certain city may have been relatively low. In the other hand, auto insurance company B will offer high rates for drivers residing in the city of Orange because the have had to pay out a high amount of money in auto insurance claims.
Each auto insurance company's rates are adjusted according to their losses. They can raise insurance rates areas they have had a lot of payouts on and lower rates on those areas where they had a low amount of payouts.
Not only do they categorize drivers by a City's zip code, but also by many other factors including driving experience, driving record, marital status, occupation, type of vehicle, and a few other important factors.
That is why it is important to compare rates from multiple auto insurance companies. Although a certain auto insurance company may be cheap for your neighbor, it may be expensive for you and vise versa.
Unfortunately, we don't know right off the bat who will be the cheapest company for us; therefore, it is a good idea to compare rates from several auto insurance companies. Be sure to keep "quality" in mind, not only price.
There are faster ways than individually calling several different companies to get their auto insurance quotes. There are brokerages out there that can instantly compare auto insurance quotes from top companies and allow you to purchase the policy. Better yet, there are some websites that will allow you to compare auto insurance rates instantly, with one simple process, from top companies.
One such website is OnlineAutoInsurance.com, which allows you to compare rel=nofollow [http://www.onlineautoinsurance.com]auto insurance online from top companies such as Progressive, AIG, Infinity, GMAC and other quality auto insurance companies. You can even buy your policy online if you wish.
The authors for http://www.OnlineAutoInsurance.com are licensed auto insurance agents which use their experience to write helpful auto insurance articles.
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