Insurance…

Sometimes when people are looking for insurance quotes, they don’t stop and consider different things that may change the premium when everything is final. They tend to forget that a quote is just that—a quote. A quote is not a firm commitment. It is an estimate based upon a short application and minimal information that a potential policyholder provides when requesting information.

Several factors come into the picture when an insurance company gives you the final price of the premium on your insurance policy. By learning what some of these factors are, you can ask the questions from the beginning and save yourself the frustration of finding out later that your premium will be higher than you had planned. Some knowledge of the rating factors that insurance companies use will assist you in avoiding any surprises.

Each insurance company uses different underwriting factors, so you want to make sure that you find out what those factors are and how they might affect your premiums. For example, not every insurance company offers discounts for non-smokers, so if you don’t smoke, be certain to ask the agent or broker about this discount. Certain health conditions that you already have may also affect your premium, so disclosing any of these conditions up front will guarantee you a more accurate quote.

When it comes to automobile insurance, you may want to find out if the company you are selecting offers a multi-car discount, good student discount, safe driver discount, discounts for having a factory installed car alarm, and any discounts for passing a defensive driving course. In addition, some companies combine one or more of these discounts while others discount them individually. Don’t assume that you know the answers, but ask the agent or broker during the initial consultation.

Unless your health insurance policy is a group policy through your employer, certain pre-existing conditions may be excluded or include a surcharge. This may include things such as a heart condition, diabetes, cancer (even when in remission), and asthma just to name a few. Since not all insurance companies rate these conditions the same way, asking each agent or broker about their policy concerning certain conditions will allow you to obtain the lowest possible rate for your health needs.

Homeowners insurance has several different ways that you can reduce your premiums, and again, each company has its own rating policies. Some of the discounts that a company may offer include discounts for having a smoke detector and being within a certain distance of a firehouse or fire hydrant. In most cases, the agent or broker will already have this information at his disposal, but to be sure that you have the lowest rate, make sure that you provide the information.

Asking questions concerning all issues that may affect the rating of your policy will give you an opportunity to choose another insurance company if necessary. Knowing the right questions to ask will assure you that you are getting the answers you need in order to ask the questions that are essential for your insurance needs.