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Before we continue to answer this question, there is one thing that you need to know about auto insurance quotes. If you get an auto insurance quote, it could just be an estimate of what your insurance premium might be. To actually check what your insurance premium is going to be, you have to start to make an insurance policy. It is only at that time that an insurance quote is binding. Any quotes that you get before this time are not binding. Therefore, it is important to make sure you get accurate quotes. Be sure to give the provider all of the information you can, including the bad stuff. You do not want to cancel your current auto insurance policy only to have to pay more for auto insurance afterward.

How Long Is An Auto Insurance Policy?

how long

When you are looking at quotes for auto insurance, it is extremely important that you look to see how long the auto insurance policy is. Just because you have a cheap quote, doesn’t mean that it is for the length of term that you want. When you’re shopping around for quotes, you should always ask how long the insurance policy lasts. You will likely have to decide between a few different policy lengths. You may even be able to ask for a quote for each individual policy length in order to see the differences in cost.

What does An Insurance Company Need To Know To Get A Quote?

The insurance company balances and weighs a bunch of information to come up with a number for you. Generally, you can expect to be asked what you are going to use the car for. You will also be asked things like how much you drive in a year if you own the car, what your driving record is, what brand the car is, the model, as well as things like your age and gender. Your insurance company may even ask for more details than this. These, however, are the basic things that most insurance companies will ask you.

What Information Does My Insurance Company Need To Set Up A Policy?


A policy is a little bit different than just getting an auto insurance quote. You are going to need to give your insurance company much more specific details. Here is a list of the most common things that your insurance company is likely going to ask for:

  • Voided cheque or bank account information
  • Vin number of the vehicle
  • Ownership of the vehicle
  • Driver’s license
  • Address
  • Kilometers you will roughly drive in a year

How Long Is A Quote Valid For?

As long as you have given your insurance company all of your information in an accurate manner, your quote should remain valid for anywhere between one day and 90 days. It really depends on the insurance company that you’re dealing with. Some companies give out more in-depth quotes to clients than others. When an insurance company gives out a quote, you can expect it’ll be a little bit higher than the actual price. Insurance companies do this in order to make sure that they don’t accidentally give out too low of a quote. It is important to realize that there is no law in place that states how long a quote has to be good for. It is only the goodwill of your insurance provider offering to keep a quote valid for a certain period of time.

What Is the Difference between an Estimate and a Quote?

It is important to pay attention to the words that your insurance company uses when telling you your insurance premium. There is a big difference between an estimate and a quote. If your insurance company is giving you an estimate on your car insurance, it is not necessarily accurate. Generally, an estimate is a ballpark number that an insurance company will give you, to give you an idea of how much auto insurance is going to cost you. A quote, on the other hand, is a fixed price offer that can’t be changed after a customer accepts it.

What Is the Best Way to Compare Insurance Quotes?

One of the best ways to compare insurance quotes is to check an online quote comparison website. Your other option is to call up a bunch of insurance companies, tell them your information and compare quotes that way. However, using an online quote comparison tool is going to be much faster than calling a bunch of insurance companies. You will be able to input your information one time instead of saying it over and over again. Using a quote comparison tool also makes it super easy to see what the prices are and who is providing them.

How Do I Know That An Insurance Company Is Reliable?


Just because an insurance company offers cheap insurance, doesn’t mean that you should get insurance through them. An insurance company offering insurance for too cheap of a price might have a difficult time staying in business. It does not hurt to check out an insurance company’s track record to see if you should go with them. You do not want to get insurance through a company that has not made a profit in the last 5 years, for example. It is extremely important to find an insurance company that will actually be able to afford to pay out your insurance claims if you need to make them.

To Conclude

Whenever you get an auto insurance quote, it is important to think of it as an estimate. Your quote is not locked in until you lock in an insurance policy. It is likely that a quote is going to be off by a little bit. insurance companies do not have all of your information until they are legitimately making a quote to start up a policy. Sometimes insurance providers only give out estimates. This is still a great thing to check out in order to see if you’re getting a good deal on your auto insurance. The more quotes/ estimates you get, the more likely it is that you’re going to get a good deal on your auto insurance policy.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.