What is a car insurance quote?
A car insurance quote is an estimated premium from an insurance company for how much you will pay for a policy. When you get an auto insurance quote it is an estimate from an insurance company for how much the premium for your policy will cost. Each company uses a custom formula to calculate your rate based on the personal information you provide. So, no two quotes will ever be the same. Therefore, it is a good idea to compare quotes from multiple companies to find the best rates.
Once you submit a quote request, insurance companies will assess your threat level. They review your information to determine the likelihood you would get into an accident and how much a claim would cost them.
Getting a car insurance quote is free. You can complete one online or over the phone. Once you receive an estimate, it is valid for a defined period set by the provider.
What information is needed to complete a car insurance quote?
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As part of the quoting process, you will need to answer a series of questions about yourself, diving habits, and your vehicle. Here is the information you will need to obtain a car insurance quote online or over the phone:
- Basic personal information: Your name, gender, age, phone number, and email.
- Mailing address and postal code: This is requested because your level of risk is association with where you live. Certain cities, neighbourhoods and postal codes have more traffic, accidents, thefts, and more expensive claims.
- Driver’s licence: This is to show proof of your licence type and that it’s valid.
- Vehicle make, model, year: Your vehicle type and value affect the cost to insure it. For example, a car that is a common target for theft will be more to insure. Your car model, features, and modifications will also affect the price.
- Driving habits: Insurers want to know how many kilometres you drive daily and if you use your car for personal or business use. How you drive, how often, how far and where are all considerations.
- Insurance and driving history: Past actions are a predictor for future trends. If you have a poor insurance or driving history, you will be a bigger threat to repeat these mistakes again. This will increase your premiums. But, if you have a clean record, you will be rewarded with lower rates.
- Coverage requirements: The level of coverage you require will affect your premium amount. The more you add, the more you will pay. But you will also have more peace of mind in knowing you are covered against more threats.
- Policy start date: Inform the insurer when you need the policy to start – right away, next month, when your current plan expires.
Always be honest with the information you provide to insurance companies. If you provide false or misleading information, your quoted premium will not be accurate. This is also grounds for your policy to be cancelled. Providing accurate information will get you the best quote for your auto policy.
How long do car insurance quotes last?
It depends on what provider the car insurance quote is from. For some insurance companies, quotes will be valid for 30 or 60 days. Some may be longer or shorter. Speak with your advisor for clarification on how long your car insurance quote will last. If you receive a quote you like, it is advisable to act quickly to secure the rate. Remember, that its common for premiums can change, as often as quarterly.
