What is the Difference Between a Car Insurance Estimate and a Quote?

Q: What is the difference between a Colorado car insurance estimate and a car insurance quote? Are they the same thing? Thank for clarifying.

A: There is actually quite a bit of difference between the two as you probably suspected. A Colorado car insurance estimate is a firm offer that the company will sell you an insurance policy at a certain rate for a certain amount of time.

An estimate, on the other hand, is just that. The agent takes a quick look through your information and throws a figure at you. This is not a binding offer and can actually increase by hundreds of dollars as the agent takes a closer look at your situation. Look on the bright side, sometimes the quote will be less than the actual cost.

When you receive a price from an agent make sure you ask if that is the quote or the estimated cost. Knowing the difference will save you a lot of aggravation in the end.

With that being said; obtaining a Colorado car insurance estimate is still a very good idea. By getting a couple of estimates you are able to compare the basic costs of the insurance policies without undergoing a long and drawn out process.

Last but not least, we want to really drive home the point of comparing quotes from several different auto insurance providers before you make a choice. Some good old-fashioned comparison shopping will not only ensure that you get the best price on your new policy, you’ll also receive better coverage as well.

Source by David Ackland

Ben Wills

I am a professional finance expert and business lover.

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