Why are car insurance quotes so different between insurance companies?

That's why it pays to shop around.,

I had nationwide for close to TWENTY years, in the last five years I had them they kept raising it 5% to 10% every six months, I have no accidents and No tickets, I called around and got quotes, Allstate, state farm, Safeco, all were much less, I called up natiowide and they were like , Oh well, so I went with allstate they weren't the cheapest but they have an office like 3 blocks from my house, so that is what I have now.

Until an insurance company actually issues you a policy for the $70 less, then odds are the quotes are not reliable.

Quotes are based on basic facts that you give to the insurance company, that is just the “average” of what they “might” charge you. But after you fill out the application, then they run your license to see if any points, then they run your record to see if you have had any accidents, at fault or not at fault.

In some cases, some companies may quote much less in hopes that you buy a policy only to find that the quote maybe $10 less vs $70, then you just buy it.

Many, reasons. I would proceed very carefully. There is no way the coverage's are identical.

Caveat Emptor

Because they all have different charges.

Some companies are cheaper because their service quality is poor.

Underwriting decides the risk. It is not an exact science.

Same coverage is a big statement ,,,, how sure are you ?

Read ALL the small print about what is covered and what isn't also check the deductible both voluntary and compulsory.

First check the level of coverage in ALL sections of the policy - the cheaper one might have lower coverage limits, or not include fire and theft coverage, or have higher deductibles, for example. Did you obtain quotes based on the same postal / zip code; driver name, age and credit history? The second reason is that the different companies might offer lower rates for specific workers such as teachers or graduate professionals, or higher rates to other professions prone to more claims (such as night shift workers).

Differing levels of risk tolerance, difference client base in the pool, difference in number of clients in the pool, difference in overhead costs.