I'm pretty sure a lot of companies oversell their hosting, on the basis that most of their customers will only use a fraction of what they have been allocated.
Having said that, even if your host is operating in this way you should expect to get the storage and data transfer allowance you've paid for, they just may not be able to cope if a large percentage of their customers start using their full allowance.
Generally what I would watch out for his hosts who sell "unlimited" hosting, as they will probably have an acceptible use policy which means that at any time they could tell you you are using too much bandwidth. Its much better to have set limits with pre-defined overage fees so you know exactly what you are getting for your money.
Perhaps you can post some examples of companies you've looked at, other members may have experience of them.
Hope this helps
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