What are insurance quotes?
Insurance quotes are a way reputable insurance companies: ‘state a price for the service of offering insurance coverage to you’.
The insurance industry safeguards the assets of its policyholders by transferring what is know as “Risk”(exposure to the hazard or chance of loss), from an individual or business to an insurance company for homeowners insurance, renter’s insurance, auto insurance, boat insurance, motorcycle insurance, life insurance, health insurance and business insurance for the most part.
When an insurance company, insurance broker, or independent insurance agent provides you with an insurance quote they are acting as financial intermediaries in that they are “offering you a price for a service” that if you accept becomes a Premium (what you pay) for the service the insurance company offers to protect you against Risk i.e., your ‘Insurance Policy’.
It is highly recommended that you compare insurance quotes through reliable sources before you make a decision about important insurance coverage.
Here are a few general questions to consider before you make any important insurance decisions and obtain an insurance quote:
- Who do you know that already has insurance?
- Can you ask them about their experience with insurance?
- Can they recommend their insurance company?
- Where did they find out how to get insurance quotes?
- How did they get the most value in insurance coverage for the best price?
- Did they compare several insurance quotes from several insurance companies?
- Did they ask about discounts for ‘companion policy’ insurance quotes?
- How did they compare the coverage offered for the price?
- How many sources did they use?
- Did they go to the Internet?
- Did they contact the Better Business Bureau?
- Did they find brokers, agents and/or insurance companies and call or visit them?
- Did they use an Independent Insurance Agent who can look at lots of companies?
Alternatively, you can use the directory of reliable companies offered by the Texas Department of Insurance website at
www.tdi.state.tx.us.
Here is how you can make smart decisions about insurance quotes:
Talk with others about the companies they use, since their views on present or past insurers may help you to avoid dishonest companies or find a good one. This can either be done online through forums or message boards or in person with your family, friends or neighbors.
Make a short-list of the names of reputable insurers or Independent Insurance Agents and get insurance quotes from them. Then compare insurance in terms of needs as well as quality and value of coverages provided.
Select the insurer who offers you the best coverages and values for the things you need.
Generally speaking you want to obtain and compare insurance quotes from at least three or more reliable insurance companies. Choose the ideal one with the best coverage and value, then visit the Texas Department of Insurance website to make sure they are legit.
You need to remember these important facts about insurance quotes:
Failing to obtain insurance quotes from highly rated brokers, independent insurance agents and/or insurance companies could mean potential financial disaster on your part. Understand the quote you have received and the insurance coverages it provides because that quote translates into a premium you pay for your insurance policy.
Always check out the company you choose with the Texas Department of Insurance (TDI) as well as the Better Business Bureau (BBB).
Doing these things takes more time than just requesting a free insurance quote but the rewards can be huge. You don't want to be in a position where you have to collect a settlement from your insurance company for a claim only to find that you are not covered for a particular risk or that they have gone bust!
Once verified, pick one company that has solid financial stability and effective fast claim processing history.
Remember to that if you can combine home insurance or homeowners insurance (as it is known) with auto insurance you can potentially save a substantial amount on both policy types by buying both types of insurance as ‘companion policies’ through the same insurance company.
Special Note: If you live in a rented home or an apartment you can combine your Renter’s Insurance and your Auto Insurance and most reputable insurance companies will give you a ‘companion policy’ discount as well.
So be sure and get insurance quotes for all your insurance needs when your looking for insurance. It can get you superior coverage and value for the best price.
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Disclaimer: Content and illustrations represented and provided here-in are for informational purposes only. This information should not be misconstrued to be considered Insurance or Binder Coverage for Insurance.
Always consult a licensed insurance agent in the state of Texas for specific insurance coverage types and needs analysis as insurance policies in Texas vary.
Sources used to gather content for this Article and all Articles provided in this Series include:
The Costlow Insurance Group, Inc. /
www.costlowinsurance.com
a. The Insurance Information Institute /
http://www.iii.org
b. The Texas Department of Insurance /
http://www.tdi.state.tx.us
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