Definition of Insurance Quote in Business Insurance

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Insurance Quote

Many people in the market for insurance like to shop around. This is simply part of the process of finding the best deal. The first step is to look at the quality of an agency and what they offer. When you find an organization that seems to fit your needs, you can request an insurance quote to determine if the cost is within your budget.

Insurance Quotes

An insurance quote is an estimate of what a policyholder will pay in premiums. These are the monthly or bi-annual payments you make to maintain a policy's active status. To enjoy coverage benefits, you must stay current on monthly premium payments.

Why Are Quotes Needed?

Quotes allow a consumer to decide if a plan makes financial sense for them. After requesting quotes, they can determine what policy fits their needs the most.

In some situations, people get quotes from a series of large insurers to compare the differences. Other times, they look at a mix of big and small firms to make a proper decision. Ultimately, insurance quotes offer the consumer a glimpse into the policy.

How Do You Obtain a Quote?

You obtain an insurance quote by requesting one from the company you’re interested in. In the past, the way to obtain this information was through a phone call or email. Today, customers can access company websites to gather the needed information.

On top of this, many online insurance aggregates have appeared. These permit a customer to obtain several quotes from different companies at one time. Consumers enter their personal information and the amount they need for coverage. Once sent, the data is delivered to every insurance firm the aggregate works with.

How Are Quotes Calculated?

Insurance quotes are calculated differently for each type of policy. Here are a few examples:

Auto Insurance

  • Age

  • Location (city or suburb)

  • The age and status of the vehicle

  • The average number of miles driven for business purposes

  • Whether it’s owned or under a loan

  • Previous driving history

Home Insurance

  • Age of the property

  • Value of the home

  • Amount of the home loan

  • Type of coverage

  • Location (city or suburb)

  • Review of criminal activity in the surrounding area

Life Insurance

  • Age

  • Current health conditions

  • Pre-existing conditions

  • Amount of life insurance you desire

Medical Insurance

  • Age

  • Type of coverage (PPO, HMO, High-Deductible)

  • Types of Insurance (Medical, Eyes, Dental)

  • Current health conditions

  • Deductible amount you want to pay

Quote vs. the Actual Price

The important thing to remember is that an insurance quote may not be the actual amount paid by the customer. After they move forward with the policy, the insurance company could discover something that affects the outcome. Conversely, the customer might decide to increase their deductible. In turn, the final price for the policy is adjusted.