INSURANCE QUOTE DEFINITION
EXAMPLE
Tess wants to renew her auto insurance policy, and she’s not sure she’s paying the lowest rate for her coverage. She visits the websites of three reputable auto insurance companies and provides each with identical information about herself, her driving history, her vehicle and the amount of coverage she wants. Each company then provides her with an insurance quote. The actual premium Tess pays might be slightly higher or lower if the insurance company’s underwriting department discovers that any of the information Tess provided during the application process was inaccurate. If not, the quoted price is probably the price Tess will actually pay, and she will choose the least expensive option for the amount of coverage she wants.
FIRST FOUNDATION TIPS
Obtaining insurance quotes from at least three companies is a good way to make sure you don’t pay more than you have to for a policy. If all three quotes are too high, you might be tempted to decrease your coverage to save money. However, ask yourself if you will really be able to afford the reduced benefits in the event of a claim. A better way to lower your premiums is to increase your deductible, the amount you’ll be responsible for before insurance kicks in if you file a claim. You can put the savings on your premium toward an emergency fund that you can use to pay the deductible if the need arises.
An Insurance Broker will do this legwork for your and help you find the coverage that is best for your needs. Get A Free Insurance Quote today!