My neighbor has lower auto insurance rates than me, why?


The other night at a party, I overheard two people talking about auto insurance.  I didn't catch all of the conversation, but the gist of it went something like this:

Guy: So you drive a Honda Accord huh?  That is the same exact car I drive.

Girl: Yeah, they are nice cars and get great gas mileage.

Guy: True. My auto insurance is so expensive though.  

Girl: Really, how much do you pay?

Guy: Like $150 a month.

Girl: Wow, that is high, I only pay $55 a month.

Guy: No way!  For full coverage?

Girls: Yes.

Guy:  I need to switch to whomever you are using.


Conversations like these make my skin crawl a little bit.  Not because they are comparing rates, but because they are comparing rates without discussing any of the factors that influence rates.  So let me give you the facts about this scenario; yes I made it up but I have heard similar conversations.

First of all, although they drive the same make and model of car, his was a newer model by 5 years, hence, making it more expensive to insure. 

Second, auto insurance rates for females, in almost all cases, are lower than males.

Third, the guys credit isn't that good and he didn't qualify for the upper tiers of insurance rates.  (this factor alone could vastly vary rates)

Fourth, the girl had a clean driving record and the guy had a speeding ticket.

Fifth, the girl lived in a different zip code, one that qualified her for a better rate.

Sixth, the girl only had state minimum liability limits and the guy had much higher liability limits.  (this one drives me bonkers; of course the rate will be lower if your coverage is not as good.)


These 6 factors only scratch the surface of the things insurance companies look at to determine rates.  It is very difficult for one person to compare their rates to another.  Even if you drove the exact same car and lived next door to each other, the other factors like marital status, driving record, and credit score can make rates higher or lower; so comparing your rates to your neighbors isn't all that effective.

What is effective is calling Insurance Professionals of Arizona and allowing us to shop the market for you and compare you amongst all the carriers we have.  This way, we can find the company willing to offer you the best coverage at the lowest possible price.

Call us now at 480-981-6338 for a free quote on your auto and home insurance or go ONLINE for more information.  We service all of Arizona and have great rates on auto and home insurance in Mesa AZ, Chandler AZ, Gilbert AZ and the surrounding areas.