Question

Why does my friend pay less for insurance than I do?

I think what I pay for car insurance is ridiculous. I have a friend that has the same car as me but he pays $20 per month less than I do with a different company. Why don't we pay the same amount and what can I do to lower my rate?

Feb 21, 2016 Clearwater, FL

Answer
Neil Richardson

Feb 21, 2016

Auto insurance rates vary based on a multitude of factors. All things being equal, there is still a possibility that your rates will differ from what others pay due to personal factors like credit, zip code, household residents, and driving history. Assuming you are paying too much strictly based on what a friend or family members pays is a recipe for failure because it can be significantly different due to any number of factors. If you think you are paying too much then you should shop around with as many companies as possible to see what your best rate might be but don't assume it will be the same as anyone else's premium.

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