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What is a car insurance quote? Do I need a car insurance quote? How can car insurance quotes differ from insurance rates? Where should I look for the best car insurance quote?
What Is A Car Insurance Quote?
A car insurance quote is an estimated cost of a policy. Because insurance is a qualification process, you need a quote to compare prices. Car insurance quotes give you a good idea of what you will end up paying.
Of course, this rate is subject to change. If you get a good car insurance quote today, it may be higher tomorrow.
If you get a quote without letting them run your driving history, be prepared for the rate to go up. If you get a quote before they’ve run your credit report, be prepared for it to go up. A quote is the most important part of getting insured.
Do I Need A Car Insurance Quote?
Yes! If you are looking to drive a car, you will need to get an insurance quote. Also, if you think you may be paying too much for car insurance, you’ll need a quote.
A car insurance quote is the first step in the process of getting car insurance. So if you are already insured or satisfied with your rate, you may not need a car insurance quote.
How Can Car Insurance Quotes Differ From Insurance Rates?
Generally, an insurance quote is an estimate of the final cost. If your driving history or credit are better than expected, the rate may be lower. If you didn’t disclose a car accident or a ticket, it might go up after the estimate.
Also, you may get a discount if you pay several months of your policy at once. This is usually called a paid-in-full policy.
Where Should I Look For The Best Car Insurance Quote?
There are basically four places where you can get a car insurance quote: comparison websites, corporate websites, an independent car insurance agent and a captive car insurance agent.
A comparison site’s main advantage is the possibility to help you save time. You can get 10-20 quotes from different companies at the same time. However, they may be more expensive than buying directing through the company websites.
Corporate websites are often the cheapest way for an insurance company to get new business. Because of this, you can often save money by getting a quote through their websites. However, it can become time-consuming to comparison shop this way.
Independent car insurance agents, or non-captive agents, represent multiple car insurance companies. The main advantage is that they do most of the work for you. However, they do not have a fiduciary duty to you and aren’t required to disclose the best rates they find. They can choose to only tell you about the quotes that pay them the most.
Captive insurance agents represent only one insurance company. They are people like your local Allstate or Geico agent. Unfortunately, working through them can have several drawbacks. They may take longer or be more expensive than going through a corporate website. They also don’t have any fiduciary duty to you.
Instead, I recommend trying a comparison site and then double checking the best rates on the corporate sites. This can save you time and make sure you’re getting the best rate possible.
So you now know why you need a car insurance quote and where to look for one. If you want to learn what I use, check my review here.
Click here if you want to try Root Insurance today!
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.