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Why do you think prices fluctuate so much

For example if you go and get auto insurance quotes and get the same coverage and deductibles quoted on each of them, one company will be like $900.00/ year and another will be like $2000.00/yr. Why do you think they have such large amounts of differneces? It is just crazy to me. And it is like that on lots of things from autos, homes, to recreational vehicles.

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Asked by Anonymous at 2:54 PM on Jun. 5, 2009 in Money & Work

Answers (3)
  • For insurance, there alot of variables such as how much you want on uninsured motorist, the amount of your deductible. At the same time, there are companies that are called Premium, who will only insure those with a good record. There are others that want any person on the street and sometimes they will have better rates, but also with caveats as to what they will cover and they will cancel your policy on your very first infraction.

    With homes, it depends what the owner believes to be its worth, and then of course that is backed up with local comps. The variables, again make such a diff. like custom cabinets, or cheap cabinets. Tile baths versus a plain sheet rock or plastic baths make a huge price jump. Even smaller things like trim along the floor and ceiling determine the worth of a house. :)

    Rec vehicles prob. cost much more near a lake or near a mtn. trail area, but at the same time..


    Answer by lifeasinoit at 3:16 PM on Jun. 5, 2009

  • ...depending on how many are available in that area can drive the worth (cost) down. Just like the housing market. There are soo many houses for sale, that if you want to sell yours, you have to ask less in order for the buyers to be attracted to yours.

    All of these things make consumers price shop more.

    Answer by lifeasinoit at 3:18 PM on Jun. 5, 2009

  • I think some companies just want a bigger profit. Some "well known" companies may charge more, just because it's a "name brand" such as Progressive, State Farms . . .
    It's no different that buying clothing, you pay more for the name brands.

    Answer by Anonymous at 3:27 PM on Jun. 5, 2009

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