Why is there a difference between the cost estimated by the insurance agent and the actual cost?

The insurance premium is determined by the insurer based on several factor. This would include the type of car being insured, how much the car would be driven, the place of residence of the person insuring the car, how much coverage is required, the age of the person, and the driving record of that person. If the insurance agent had not reported all these factors properly, there would be what is known as a misquote. When the insurance company checks the driving record of the insuring person with the motor vehicle divisions of all the states, they might find something not reported in the original application. Under such circumstances, the insurer would charge higher premium than what had been quoted by the insurance agent. As such, all the relevant information about the driving record and other factors should be furnished without any omission to avoid misquotes.