Insurance quote
An insurance quote is an estimate of the premium an insurer would charge for proposed coverage, based on the information you supply. It lets you compare price, limits, deductibles and options before you buy, but it is not the policy or proof that coverage is active. The binder or issued policy controls your coverage.
Also called: quote, quotation, misquote
A quote tells you what a policy would probably cost, given the coverage you picked and the facts you gave about yourself, your vehicle or your property. Two things follow from that. The price is only as good as the information and choices behind it, and the quote does not make you covered; that starts with a binder or an issued policy on its effective date.
What a quote pays for, and what it does not
The quoted premium buys coverage for a term; it is not the amount a claim would pay. Take an illustrative auto quote of $1,200 a year. Paid in full, that is $1,200 for the annual term, or $100 a month if the insurer allows twelve equal installments. The California Department of Insurance (opens in a new tab) then shows how a claim works on its own track, with a $1,500 covered comprehensive loss and a $500 deductible.
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Quoted annual premium (illustrative) | $1,200 |
| Monthly, if twelve installments are allowed | $100 |
| Covered comprehensive loss | $1,500 |
| You pay the deductible | $500 |
| Insurer pays ($1,500 minus $500) | $1,000 |
The deductible you choose moves the premium and sets your share of a claim, while the payment itself comes from the issued policy, its exclusions and limits, and the facts of the loss.
The choices that move a quoted price
Higher liability limits generally add protection and may add premium; in Connecticut the floor is $25,000 per person and $50,000 per accident for bodily injury, $25,000 for property damage, and matching $25,000 and $50,000 uninsured or underinsured motorist coverage, according to the Connecticut Insurance Department (opens in a new tab). Collision and comprehensive are not required by Connecticut law, though a lender or leasing company may require them; adding them raises the quote and widens what the policy can pay, as our comparison of comprehensive and collision coverage explains.
A higher deductible generally lowers the quoted premium and raises what you pay when a covered loss occurs. The term and payment plan matter too: auto policies can run from one month to one year, and installment plans may carry a fee, according to the California Department of Insurance (opens in a new tab).
Health quotes follow their own rules. Marketplace premiums can depend on location, age, tobacco use, plan category and whether you enroll alone or as a family; age can make a premium up to three times higher for older adults, tobacco use can add up to 50 percent, and health status, medical history and sex cannot be used, according to HealthCare.gov (opens in a new tab). Bronze plans usually carry lower premiums and higher out-of-pocket costs, and Platinum plans the reverse, so the lowest monthly premium may not mean the lowest total cost, per HealthCare.gov (opens in a new tab).
Where you see a quote, and how it differs from a binder and a policy
You can get a quote for auto, homeowners, condo, renters, life, health, pet and business insurance, whether you are shopping, renewing, changing a vehicle or property, or replacing coverage after a claim. A quote commonly shows the proposed insurer, policy period, premium, coverages, limits, deductibles, discounts, rating information, assumptions and selected endorsements.
The documents that follow do different jobs. A binder is a temporary agreement providing coverage until the policy is written or delivered, according to the California Department of Insurance glossary (opens in a new tab). The policy is the written contract with the coverages, exclusions, conditions, limits and duties, and its declarations page summarizes it. A renewal notice offers the next term, and a claim letter applies the issued policy to a loss.
How Connecticut and New York shape a quote
In Connecticut, an auto quote has to account for the state's minimum security requirements, tied to proof of financial responsibility under Conn. Gen. Stat. § 14-112 (opens in a new tab) and to uninsured and underinsured motorist coverage under Conn. Gen. Stat. § 38a-336 (opens in a new tab). Applications and some renewals also come with written notice of the insurer's information practices under Conn. Gen. Stat. § 38a-979 (opens in a new tab). Connecticut sets required coverage, not one statewide quote amount; our guide to the average cost of car insurance in Connecticut covers what drivers pay.
In New York, an insurer must charge its filed rate even if a broker gave an inaccurate quote, and a broker fee on top of the premium needs your signed consent, according to the New York Department of Financial Services (opens in a new tab). Required first-party benefits on covered auto policies must be offered with no deductible or a family deductible of up to $200, subject to exceptions, under Insurance Law § 5103 (opens in a new tab). At renewal, a total increase above 10 percent on covered auto and residential property policies comes with the amount and a written explanation of the main rating factors, and you can ask for an explanation in writing and get it within 20 days, under Insurance Law § 2356 (opens in a new tab).
Questions to ask an agent or insurer
- Which coverages, limits, deductibles, exclusions and endorsements does this quote include? Two premiums mean little unless the coverage behind them matches.
- What information did you use, and what could change the final premium? A quote rests on what you supplied, and New York DFS (opens in a new tab) asks applicants to answer driving, vehicle and other questions fully and accurately.
- When does coverage begin, and will I get a binder or policy before that date? Only a binder or policy puts coverage in force.
- Is this the total cost, including installment charges, broker fees, taxes and surcharges? Fees can sit on top of the quoted premium.
- What may happen to the premium at renewal, and how do I ask why it went up? In New York, qualifying increases come with a written explanation, and in any state the agent can walk you through the rating factors.
Frequently asked questions
Four questions come up often.
Is an insurance quote binding?
A quote is not proof of coverage; a binder or policy is. In New York, the insurer is not required to honor an inaccurate broker quote over its filed rate, according to DFS (opens in a new tab).
Why is my final premium higher than the quote?
The insurer may have received more information, applied a surcharge, corrected an assumption, or added a permitted broker fee. An accident or a ticket that surfaces after the quote is one example that can raise the price.
What is a misquote?
A misquote is an inaccurate or misleading quote, according to the California Department of Insurance glossary (opens in a new tab). It is not a type of coverage.
Should I pick the quote with the lowest premium?
Compare like with like first: the same limits, deductibles, exclusions, benefits, networks where they apply, and total costs. A cheaper premium can come with lower limits, a higher deductible or narrower coverage.