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What is a car insurance quote?

Updated: 9/17/2023
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13y ago

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A car insurance quote is an estimate, usually accurate, of the premium that an insurer will charge for auto insurance for a stated period of time. Quotes are based upon the risk factors involved, such as the make and model of the vehicle, its primary location (that is, where it is garaged), whether it is used primarily for business or personal use, annual mileage, and characteristics of the primary and secondary driver(s) (such as age and driving history).

Quotes are issued by licensed insurance agents or brokers who have been appointed by insurers to represent them. However, when an insurer is a "direct writer" (meaning that it does not use agents or brokers), the insurer itself issues the quote.

It is critical that the applicant provide accurate information upon which to base the quote. The failure to do so, sometimes in an effort to try to get a lower premium, may result in a quote that does not rightly compensate the insurer for the risk. If this happens and a covered loss occurs, the insurer may deny coverage due to the misrepresentation by the applicant.

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