Millions of people change jobs or otherwise find themselves needing new alternatives for health insurance each year. In the US alone, roughly 30 million people each year leave occupations that directly provide private healthcare insurance. In addition, millions more make changes to their Medicare supplemental plans that require careful consideration in terms of both coverage and price.
Furthermore, millions more shop around each year for insurance coverage for their homes, automobiles, and businesses. Needless to say, the demand for immediate cost and coverage estimates is massive. Virtually every major insurance provider offers online insurance quotes, but how accurate are these estimates? More importantly: what should you know about them?
Let’s unearth the details about online insurance quotes and what anybody should know beforehand to get the best insurance quotes online.
What Factors Are Considered in Online Insurance Quotes?
In just a couple of minutes, most people can easily fetch an online insurance quote – whether that be for auto insurance, health insurance or one of the many other common types of insurance. The criteria will vary from type to type, but here are the primary factors considered:
• For auto insurance, age, gender, marital status, recent traffic tickets or violations, whether you own the vehicle outright or are currently paying for it, neighborhood where the vehicle is parked and the vehicle type itself all have an impact.
• For health insurance, age, location, tobacco use, and whether you have any of a limited number of health conditions (such as end-stage renal disease) can impact the overall quote.
• For home insurance, there are a number of details that can impact the quote. Among these, proximity to a fire station, whether you live in a flood plain, additional renovations (such as swimming pools), marital status, homeownership status and credit history can all play a role in the price quoted.
• For life insurance, there are a few factors. Age, tobacco use, gender, family medical history, current health status, and driving record may all be asked when furnishing an instant online life insurance quote (click here to learn what to expect when applying for life insurance).
How Accurate Are Online Insurance Quotes?
Different insurance companies may ask for different types of information in an online quote. Some agencies wish to ask for minimal information in order to ensure completion of the quote: this provides the company with leads and the ability to reach out to consumers directly. Others ask for more detailed information (as mentioned above), which allows for a more refined estimate.
Usually, an online quote that only asks for your date of birth, location, and gender will have a wider variance in actual costs than one that asks for more detailed information.
Do Online Insurance Quotes Require a Commitment?
Other than providing a name, various personal details, and an email address or telephone number, there is no obligation to act upon anything when receiving a quote. Many insurance companies will continue to pepper you with emails, phone calls and/or traditional mail for months or even years after you request an online quote, but no commitment of action is required on your part (registering on the national Do Not Call Registry can help reduce unwanted insurance calls).
Generally, online insurance quotes are a quick and easy way to obtain general estimates for the cost of insurance – regardless of type. While you will be required to provide some personal info, most online quote systems are more efficient than calling an agent or meeting with an insurance salesperson face-to-face.