Insurance Quote
Insurance Dictionary -> Insurance Quote
An insurance quote, like quotes in other industries is an estimation (or in most cases a conditional offer) as to how much an insurance policy will cost the potential customer, based on background checks and the information provided at the time of inquiry. The figure quoted is usually the cost of the monthly or regular payment, otherwise known as the insurance premium. This is how much the holder must pay in to the policy for coverage.
Because circumstances may change, or more information might come to light on the customer’s situation, the actually premium and the quoted premium may be quite different when it comes to writing up the policy. Obviously the final contract does not have to be signed if the customer feels the amount is too high.
There are many factors that go in to determining the cost of an insurance policy. It depends on the type of insurance, specific risks and clauses, and how likely the holder might be to cash out the policy. For example an ice road trucker, which is a life threatening job, will have a far higher life insurance premium than a housewife that doesn’t work and is therefore a low risk prospect.
The amount of cover also determines the premium. For example the cost of property insurance will go up if the contents of the property are also covered.
Obtaining an insurance quote is a very easy process in the modern age of the internet. Hundreds of independent sites, brokers, comparison tools and official insurance company websites can offer you a quote in a matter of minutes. However one must be careful to ensure they are getting a fair quote and not a cloaked or restricted quote by a company working on commission. For example a comparison tool website may only have a few insurance companies in their databse.