Can somebody please explain to me why some auto insurance companies are so cheap while most are outrageous?

I just got a new car and i've been getting some quotes. I have no auto accidents and no tickets in the past 7 years. Why are alot of companies so ridiculous and some reasonable? I've noticed that the main ones like Geico, Allstate, Progressive are the high ones while the little businesses are the cheapest.

It has to do with loss experience. The companies that have to pay out more losses have higher rates. Progressive will take anyone with any driving record. The smaller companies tend to be more selective, they only want people with clean driving records, they tend to not take younger drivers on their own (will only take them if they are on their parent's policy). It could also be that some of the smaller companies do not credit score yet. If your credit score is not great, this could be a factor too.

Before you purchase your policy, check on ambest.com & see the company's rating. If the company is rated A- or better, go for it. If they are any lower, don't. Usually, the smaller companies work with independent agents & you have an advantage there too. They represent more than one company and if you have a problem with one, they will have another. Also, they can help you with changes, insurance advice & claims.