Understanding Car Insurance Quotes

When you're shopping around for the best car insurance policy, make sure you understand what the quote you receive actually means. Many car insurance providers offer free rate quotes or estimates online, or over the phone, but it's not always clear whether the quote you receive is for the insurance policy that you will end up with. Educating yourself on the basics of insurance coverage and making sure you understand the terms and limitations of your policy can help you make the most informed decision when selecting an auto insurance provider.

Here are some things you need to know about your car insurance rate quote:

Basic Coverage Car Insurance Quotes First
You'll be given a quote for the lowest coverage first. If you submit a quote request online using a standard form, you will be asked to enter your zip code, some basic personal information, and any details about your recent driving history. Most car insurance companies will send you a quote for very basic coverage that includes the lowest possible bodily injury limit, property damage limit an uninsured motorist bodily injury limit. If you want extended coverage or additional coverage such as roadside assistance, you can expect your premium to be higher than what was quoted.

Car Insurance Quotes Exclude Discounts
If you are eligible to receive a discount on your auto insurance, this amount won't be reflected in the initial car insurance quote you receive. Remember that the initial quote you receive online or over the phone is based upon some very basic information you've provided. When you actually apply for insurance, the auto insurance provider will review your driving history, credit report and other details to determine whether you are eligible for a discount and can calculate your rate accordingly. If you think you may be eligible for a discount because your car has advanced safety features, you live in a very low-crime area, or your car is only a "leisure" vehicle and is driven on occasion, remember that your actual premium could be much lower than the initial quote.

Excludes Costs of Extended Coverage and Changes in the Deductible
If you are interested in extended coverage options such as roadside assistance, uninsured or underinsured motorist coverage, or think you need comprehensive coverage, keep in mind that your car insurance quote is probably exclusive of these items. Your actual rate may be higher than what was originally quoted, especially if you are interested in getting coverage beyond the state mandatory minimums. Your rate may also be much lower if you choose a higher deductible.

Sources:
InsWeb.com: Understanding Your Car Insurance Policy
Secure Insurance Quotes: Understand How Car Insurance Works
GoInsuranceRates.com: Understanding Auto Quotes