The auto insurance industry players have put out a lot advertisements that are geared towards promoting their companies and to clearly communicate to potential policy holders why taking insurance cover from their companies will result in savings for you, the consumer.
The world has changed and one of the biggest changes has been in the information sector.
Today people are able to get a wide variety of information on virtually anything.
The Internet has been the biggest driver in this information revolution.
The auto insurance industry has not been left behind by these changes.
Today potential policy holders can do more research on most if not all available insurance products.
By acquiring more than one auto insurance quote, you will be able to put each of them side by side and compare the auto insurer against its competitors, instead of just taking their word for it.
The truth is what you do not know is what will most likely hurt you with higher insurance quotes and cost.
In any market research information is king.
So why would one insurer be able to present a particularly high rate when there competitor is able to offer the same policy at a considerably lower rate? There are many factors, and all of them are taken into consideration when the company passes the savings (or losses) to you.
For example, marketing can be a factor.
Sometimes companies can lower the auto insurance rates in order to attract new customer or weaken their competitors in the market.
This action could be considered some kind of investment the company is making on its future.
That is they are ready to forgo current profits or even sometimes take on calculated losses with the aim that the target market once locked in will pay back the investment with big profits and given them a more strategic market position.