When you want to insure a vehicle you need to answer a few questions about it, yourself, whoever else will be driving it and coverage required. An auto insurance quote is a premium estimate a particular insurer proposes to charge based on the details provided by the applicant. It changes greatly from one company to another as they have different rates. Also, accuracy of it depends on the information you provided and truthfulness of it.
A quote is not a binding insurance contract or confirmation of coverage. You need to pay the agreed premium or installment and confirm policy activation if you want to be insured.
Initially, you need to provide certain information to get automobile insurance quotes. Then, providers base their price on those details. You may need to give further information when you accept it and want to buy the coverage. As long as every detail provided checks out the quote should stand and the final premium payable should be same or very close.
Companies can check the details provided by policyholders through various agencies. For example, you may have forgotten about a speeding ticket you received couple of years ago. If it appears on your driving records you may see that your premium is adjusted upwards accordingly.
Usually, quotes are valid only for a few days depending on the provider and it can be up to a month. Then, you will need to get another one. Also, if your circumstances changes the price will change as well and therefore it is wise to get another estimate.
The insurer who has given the quote keeps it open for a few days. Providing you entered every detail required truthfully you can pay the premium quoted and buy the coverage in that period. On the other hand, you are free to do whatever you want with it. You can go and get a few more of them online or through agents or just take the first one you got.
How Many Vehicle Insurance Quotes You Should Get
It is recommended that people get at least 3 – 5 quotes in order to have enough information to make a price and coverage comparison. It is essential that you provide the same details to every company if you want to compare prices fairly. It wouldn’t take long to get them once you get the hang of it. Most companies ask the same questions and have similar quote form layout.
Failing to check alternative rates can be very costly since the price can be substantially different among companies. In some cases, the difference between the cheapest and most expensive quote can be as much as 8 times. Imagine you picked the most expensive one and bought the policy without questioning the price!
How to Pick the Best Quote for Car Insurance?
Obviously, the cheapest one has the most pulling power. However, people base their decisions on many things. Some may just be familiar with a particular provider due to TV ads or family association and go with it. Firstly, you should make sure that you have the coverage you need. Secondly, you should know the company you are seeking protection from. You may have never heard of them but they may be very reputable and strong indeed. You just need to do a quick search online and find out what they are about.
You may have personal preferences and guidelines too. For example, the cheapest price may come from an online only insurer but you may go with the next one because they provide 24 hour assistance on the phone. That is why it is important to get a few quotes in a timely manner so that you can carry out your checks or sleep over before making a decision.