Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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UPDATED: Jul 14, 2021

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Sometimes insurance people, as with many other specialized areas, use language that is confusing to the layperson.

The word “quotation” means a special thing with insurance.

Quotation, to an insurance person, means an estimate of the cost, coverage, and terms of your insurance contract for automobile or home insurance.

Quotations are used to compare prices and insurance coverage for these types of insurance.

Quotations, in insurance, are a vital part of shopping for the least expensive and best insurance.

By obtaining quotations from different insurance companies, you are able to compare prices and coverage as offered by each company.

Careful consideration of quotes is the most effective way of shopping for insurance.

Be sure to use the FREE comparison tool above to start searching for quotes instantly!

Obtaining Quotations from Different Companies

The first step to obtaining varying quotes for auto insurance is to amass the information to obtain these quotations.

Liability Insurance Coverage under the Automobile Policy

Each state has laws that require a certain amount of liability insurance to comply with these state laws. Liability insurance is provided through the following:

  • Bodily injury liability – your legal responsibility to others for injury caused by an action of you or a member of your family while driving. State requirements vary, but reasonable limits would be $100,000 per person and $300,000 per accident. Many states require less, but higher limits usually require only a little more premium.
  • Property damage liability – legal responsibility for damage to the property of others in an accident. $50,000 per accident is a reasonable amount to request for this coverage. Your state may require less, however.
  • Uninsured and underinsured motorist coverage – provides insurance coverage for you and your family if you are involved in an accident with a person who has no insurance or not enough insurance. This limit is usually the same as the Bodily Injury Liability limits – $100,000 per person and $300,000 per accident coverage in this case. This coverage may or may not be required in your state.
  • Medical payments coverage – At least $5,000 of coverage per accident should be purchased to defray costs of emergency transportation and treatment for you and your family in the event of an accident. This coverage, too, may or may not be required in your state.

Physical Damage Coverage for your own vehicles under the automobile insurance policy.

This type of coverage pays for damage to your own vehicle whether or not you are legally responsible for the incident causing the loss.

This insurance is not required by state law, but should be examined and considered carefully to protect yourself and your financial interests when involved in an accident.

Two types of insurance are offered under this coverage:

  • Comprehensive – Reimburses you for damage to your vehicle caused by such things as theft, vandalism, hail, flood, fire, and hitting an animal.
  • Collision – Reimburses you for damage to your car from collision with another car or inanimate object.

Note that damage and theft of stereo systems, GPS systems, and CDs is not ordinarily covered under your automobile insurance policy.

Deductibles

Deductibles are the amount you agree to pay in the event of an accident. The deductible amount is subtracted from the payment for losses.

Usual deductibles are $500 per incident or $1,000 per incident. Be careful to begin a special account to pay for upkeep and incidental damage to replace the deductible amount.

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Information Needed to Obtain Quotations

When approaching insurance companies to request a quotation or bid from insurance companies, be certain to prepare the following information:

  • Names, dates of birth, addresses, and driving records for all drivers
  • Make, model, and VIN number for all owned automobiles
  • Desired coverage
  • Information about drivers’ education courses and any defensive driving courses taken
  • Miles driven for each auto – as well as use of each auto. For example, state if a vehicle is used to drive to and from school, to work, and how far the vehicle is driven daily.
  • Place of garaging

Choosing the Companies to Provide Quotations

Insurance companies much be licensed by the state in which they sell insurance. It is important to examine licensing to avoid fraud, so go to the website of your state’s insurance department to find this out.

Many states will also give the financial condition of the insurance company as well as the particular insurance company’s complaint ratio by year.

Other places to obtain financial and complaint information:

  • National Association of Insurance Commissioners (NAIC) for financial information and complaint ratios
  • A.M. Best Ratings for financial information
  • Standard and Poor’s ratings for further financial information

Getting quotations from solvent and active insurance companies makes a difference to your coverage. The status of the insurance company is vital to payment of insurance claims.

Cyber-Security

Many people request insurance quotations from on-line companies and agents. Be certain when you do so that the information you transmit is on a secured line. An indicator of this is an https at the beginning of the URL for the company and/or agency.

Certificates of security on websites are helpful.

This caution is necessary because you give your insurance company information that is critical to your identity. Identity theft is one of the fastest-growing incidences of crime in the United States.

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Methods of Saving Money on Car Insurance

In addition to quotations, there are a number of ways to save money on car insurance; these are some of the ways:

  • Keep your driving record and those of drivers in your household clear
  • Pay attention to your credit score. A credit-based insurance score is developed from this, and the score may affect your insurability and premiums
  • Shop for insurance before purchasing a new vehicle because some cars cost more than others to insure
  • Deductibles – usually higher deductibles will earn credit on your insurance premiums
  • Ask about discounts from individual companies – these vary widely.

Assessing Quotations

Place the information on each quotation in a format to facilitate comparison of coverage, prices, and other details.

Assess the premiums, but be certain to observe insurance company ratings to determine their solvency.

Ask questions. Insurance agents are well trained in answering questions since each state requires continuing education to maintain insurance licenses.

Learning about insurance is vital to your financial well being.

Use our FREE search tool below to start comparing car insurance quotes today.