Alternate names: Auto premium quote, car insurance quote, auto quote
You can collect quotes from different auto insurers through agents or through websites before you decide which insurance is right for you―and they are free. You might even get more than one quote from an insurer for different coverage amounts or types of insurance. So, if you want both auto liability coverage and comprehensive and collision coverage for your 2020 Honda Civic, an insurer will provide you with an estimate. You can ask other insurers what it would cost for the same coverage, then compare those quotes to find the best rate.
How Auto Insurance Quotes Work
What happens when you request a quote from an agent or via an insurance company’s website? Let’s review the quote process from both the insurer’s and consumer’s points of view.
Quotes from the Insurer’s Perspective
Quotes are based on the insurance company’s initial estimation of your risk as a driver, in combination with any discounts you might qualify for. The risk equation depends on various factors, including the insurance regulations in your state. For example, in some states, insurers can take your credit history into account. In other states, insurers aren’t allowed to consider your credit history. In general, these factors could influence your quote:
Your driving record, marital status, gender, and age Your location and how you use your vehicle Prior insurance coverage Any discounts you qualify for (such as combined auto and home coverage) Your choice of deductible Optional coverage, such as rental car reimbursement coverage
Insurers weigh factors differently, so their quotes will vary. To make accurate comparisons of rates from different insurers, you should provide the same information to each one. Your final auto insurance rate can be different from the quote you receive. That’s because the insurer will likely request your official driving history and a report from CLUE (Comprehensive Loss Underwriting Exchange) before issuing you a policy. CLUE is an insurers’ information database that collects past and present claim histories. The information in these reports can affect the final policy cost.
Quotes from the Consumer’s Perspective
When you get a quote, be specific about what kind of auto insurance coverage you need and discuss any concerns with the agent. The California Department of Insurance suggests avoiding asking for “the best coverage,” as the agent will guess at what you need. Also, avoid asking for “full coverage,” which isn’t an actual type of coverage. Instead, ensure you understand your state’s minimum coverage, your coverage needs, and what auto coverage you’d like to add. You’ll need to provide either the agent or an online site with several pieces of information like your date of birth, car’s VIN, your driving history, and other personal details. Have these details handy when gathering auto insurance quotes. When researching the quote, ensure you understand what the quote includes, such as:
Coverage: The amount of liability and other coverage are you buying Deductibles: Your portion of the payment when your vehicle is damaged Discounts: Which discounts are available Payments: Payments can be made in one lump sum or in monthly or quarterly installments, although these smaller payments may be accompanied by fees or other costs Optional coverages: In some states, insurers must offer you particular coverages but allow you to reject the coverage. Make sure you understand what’s optional and what isn’t in your state
Consider gathering at least three to four quotes for the same coverage and with the same deductibles and discounts. With this information, you can more accurately compare costs as well as customer service approaches. If you get a quote on the phone, ask the agent to send you the quote in writing. This way, you can easily compare policies and check for any inaccuracies. If you spot errors, ask for a correction in writing. If you have more accidents, claims, or traffic violations on your driving record than you reported for your quote, you’ll likely face higher rates. The price of your policy can also change if you change your coverage options. Before you finalize your coverage, call or check the website of your state’s insurance regulator to ensure the agent is licensed.
Vehicle year, make, model, and VIN, and whether you finance, lease, or own the vehicleAny safety systems in your car, such as airbags or specially installed after-market equipmentHousehold drivers’ (and potentially non-drivers) details, including their name, date of birth, gender, marital status, phone number, license number, and driving historyHow much and types of coverage desired
