Sometimes potential car insurance policy buyers get frustrated because the rate they end up being offered for coverage is different than the price they were originally quoted. It is frustrating as a car owner to have to go through this, thinking that you're getting one price and then having to settle for (or reject) a much higher price in the end. There are some reasons why this can happen and it is useful to go over some of these reasons. These things are much easier to understand when we pick up on the difference between a quote and a rate so that we know what to expect going forward.
Car Insurance Quote
A car insurance quote is just that: a quote. It is a nonbinding good faith effort by a car insurance provider to come up with as closely as they possibly can a price for the different types of coverage. A premium quote is more in depth than a guesstimate, because the company does take some specific information into account and applies that information to the calculation of the price it comes up with.
Sometimes quotes are dead on or very close to it. Some companies are great at providing extremely accurate quotes. The trouble is that they have a limited set of data to work with. Especially in the online market, we make it as easy and as safe as possible for car owners to get some quotes to see how their prices may shake out for auto insurance. But this quote is only based on the personal information and driving history that the potential customer provided to the insurance company.
There is a chance that something could get left out or forgotten, like an accident or a ticket you forgot about from a few years ago. With this limited information, companies come up with quotes for their customers. But a quote is not binding and the company only provides it as a service to the consumer.
Car Insurance Rate
Now, a rate is different than a quote. A car insurance rate is base on a complete analysis of all pertinent data, is run through underwriting, and is actually binding. This is the price you will pay for car insurance if you choose to accept it. If the insurer and the driver both did a good job on their part of the quote effort, this price should be very close to that price. But there are times when the two will vary, such as those times when an accident or moving violation is overlooked, or other honest mistakes of that nature.
To finalize a car insurance rate, a car insurance company has to access the customer's motor vehicle report as well as their comprehensive loss underwriting exchange report. Credit scores and all kinds of other information is checked as well. Once this process is completed, a rate offer is made and can either be accepted or rejected.
Accurate Quotes are Important
If we wish to use this quote site to effectively compare prices between different auto insurance companies, we've got to make sure to provide accurate information for anything that is asked of us. Accuracy in the quoting process is the only chance we have of a good price quote coming through.
Make sure you contribute complete and accurate information when you request quotes using the free quote form. Find the best prices on car insurance and help ensure their accuracy by doing your part as a customer to provide what is asked of you. Save money and get free quotes while learning about discrepancies between policies and price quotes.
