The quotes you receive from car insurance companies might have absolutely nothing to do with you, your car, or your driving record. It could have everything to do with the insurance company’s target markets and/or reserves versus liability ratio.
If an insurance company wants to make a dent in a certain market, they will come in with low rates in order to buy business. Conversely, if they decide they have too much exposure in a geographic area, within a specific age range, or in the type of car you drive, they will inflate the rates to drive existing customers away and to discourage new business.
An unseen factor may be the company’s reserves. If their reserves are too low compared to their exposure, they will raise rates to drive away business and make their reserves/liability ratio look better on paper.
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