Accepting an insurance quote is not just another task to check off a list it’s an important financial step that can affect your future. You should know what you are getting into and understand exactly what you will pay for by asking detailed questions. That’s why Bowthorpe & Associates Insurance Producer focuses on insurance consumer education and making sure our clients are informed about the products we offer. Knowledgeable clients are more likely to pick insurance plans that will benefit them in the long run, and we are always more than willing to answer questions our clients may have about a policy.
There are a few important aspects to evaluate when assessing a quote. We suggest the following considerations to help you gain a clear perspective.
Ask these Questions Before Accepting An Insurance Quote
Is it clear what coverage you will be getting?
Insurance policies are not created equal. Every type of coverage has its own benefits, and by knowing exactly what protections the policy you are considering offers, you can easily figure out whether there are any gaps in coverage and if the quote aligns with your expectations.
Ask yourself these questions:
- Do I understand what protection I am buying?
- If so, am I being covered the way I think I will be?
In other words, liability coverage and collision coverage are not the same thing, and if you have comprehensive coverage, you should expect your policy to cover loss or damage resulting from events beyond your control, like weather conditions, theft, or vandalism.
What are the limits and exclusions on the policy?
Insurance policies have their limitations, and by understanding them in advance, you can protect yourself from unwanted costs.
For example, you should be aware of what a coverage limit is and be sure that you understand the difference between coverage exclusions and limitations so that you can avoid unpleasant surprises.
If you don’t understand a term, call the provider and ask them for clarification.
How are premiums calculated?
Premiums can differ from one provider to another depending on your age, driving history, claims history, your occupation, the type of car or property you’re insuring, and even your credit score. That’s why understanding what is contributing to the premium amount is the best way to compare the quotes.
Bowthorpe & Associates Insurance Producer strongly advises to review at least three quotes at once and compare them side by side instead of choosing the first provider that offers a low monthly premium.
The price is important but so is the value that comes with a policy, so make sure to select the coverage that will be right for you and your family in the long run.
Are there various payment plans?
Insurance companies are very flexible when it comes to the way you pay. Whether you’re a person who prefers to budget with monthly payments or you would rather pay in full to have an easier life, you have options, and it’s important to ask the provider about them before making a decision.
Insurance companies are more likely to offer lower prices on an annual payment plan since that’s a better deal for them, but they also have flexible plans that suit different budgets and income types.
Which deductible applies to the policy?
Deductibles are a part of every insurance policy. Simply put, the deductible is the amount of money that you are responsible for in the event of an accident before the insurer contributes to the payment. Since the deductible is the part of the premium that you are required to pay upfront in the event of a loss, you should be clear about it when selecting a coverage plan.
A higher deductible may mean a lower monthly premium, but if you cannot afford to pay a large amount of money in the case of a loss, you might as well opt for a lower deductible, and vice versa.
What kind of customer service does the provider offer?
The claims process is a part of any insurance policy, and no matter how well you take care of your car or your home, sooner or later you are going to have to file a claim. The process of filing a claim may determine the entirety of your experience with an insurance provider, so it is good to check a few things before accepting a quote:
- How are claims filed, and how long does it take for them to be processed?
- What is the extent of support provided by the insurer?
- What kind of customer support options are available?
Online tools, digital or printed educational resources, online policy management, and friendly, helpful customer service can go a long way when it comes to your overall client experience.
Have I done enough research on the insurance provider?
No insurance quote is complete without a background check of the insurer that issues it. Researching the provider by checking customer ratings, reviews, and other consumers’ experiences should help you figure out whether this is a good place to buy your policy from. In the insurance industry, reputation is everything, and Bowthorpe & Associates Insurance Producer can attest to that.
We’ve found that clients are more likely to find what they are looking for and be satisfied with the overall experience if they are choosing an insurance provider with an established positive reputation.
Pay special attention to financial stability ratings. This is a key indicator of how long a company has been in the insurance business and how likely it is that your claims will be paid off in a timely manner. After all, what’s the use of having insurance if an insurance provider can’t afford to pay you in a time of need?
FAQ
Q: What are some important factors to evaluate before accepting an insurance quote?
You should look at coverage, coverage limits, exclusions, premiums, deductibles, customer service, and the insurer’s reputation.
Q: How can I best compare quotes?
Ask for an itemized list of coverage and make sure each quote has a similar amount and types of coverage.
Q: Why do insurance premium prices vary so much between companies?
Insurance companies evaluate risk differently. Your personal history, the type of coverage you are buying, and underwriting guidelines can all affect the price.
Q: What should I know about the claims process before deciding on an insurance provider?
You should ask about how to file a claim, how long it will take for the process to finish, and the extent of insurer support before choosing an insurance policy.
Q: Is it necessary to check on an insurance company’s financial strength?
Yes, because the more financially stable an insurance provider is, the more likely it is to pay your claim without any problems.