Auto insurance brokers are better than getting quotes from just one “big name company.” Why? Because many – if not most – auto insurance companies use your credit history when factoring how much they charge you.
Their reasoning is that there is a connection between your credit behavior and the amount of claims you are likely to file. Though you may disagree, they believe that people with a better credit history will, in all probability, have fewer insurance losses.
Many companies still use the old tried and true method of age, type of car you drive, number of tickets you have received and where you live to gauge their rate. And again, auto insurance brokers take this into account when putting in your information and shopping for the best rates for you, thus saving you a lot of calling around.
When my wife and I moved from Southern California (where traffic is terrible and there was an accident on almost every major freeway every single day) to Sun City West, Arizona I expected to pay a lot less for car insurance (since it is a retirement community). I got the surprise of my life when my rate went up $250 per year. I was told this was because there were too many elderly people driving here who shouldn’t be driving. I didn’t like being called elderly at all. I was only 65. But since living here for a while I can see their point. Many of the people over 70 drive too slow and their reactions are much slower, thus causing a lot of the accidents on the streets here.