Car Insurance Quotes – Are Car Insurance Quotes Legally Binding?

Q: Are auto insurance quotes I receive from insurance companies binding? If so, for how long?

A: The answer to that is yes and no. Let’s explain. If you get car insurance quotes from an insurance company, then that is the price they will charge you. However, they are not legally required to quote you the same price if you call them back three days later.

It is likely that you will receive the same quote from the same company, as long as there have been no incidents since you first received the quote, but the fact that it is likely does not mean that the company is obligated to honor the previous quote.

A good way to find out how long the quoted rate is valid is to ask the agent or representative who is giving you the quote. Beware of a hard sell at this point, however, as the agent will realize that you will be requesting quotes from other companies.

Auto insurance quotes can change suddenly due to changes in the market, new insurance legislation, or a traffic violation that may have occurred. To avoid this, we recommend doing all your insurance shopping within a day or two. This will ensure that you get the price you were quoted.

Lastly, we strongly recommend that you take price comparison seriously when it comes to finding the best deal on auto insurance. While it may seem like common sense, there are many drivers who don’t take the time to compare quotes from different companies and end up overpaying for their coverage as a result.