Not all Free Insurance Quotes are Equal

Many companies are willing to offer free insurance quotes, but it can be tricky to sort out who truly has the best policy. You'll want to consider several factors when comparing the different quotes.

Type of coverage

A policy with more basic coverage will definitely have a lower premium than a policy with more comprehensive coverage. You'll want to consider how likely it might be that you'll need to use this policy. For example, for auto insurance policy, a liability-only policy will definitely have a lower premium than a policy for comprehensive and collision.

The amount of deductible versus the amount of the premium

In many cases the amount of the deductible is one factor that you can control. Many policies will give you a choice of having a low premium (the amount you pay each month), or a low deductible (the amount you'll pay out of pocket for any treatment or services). These two are always inversely related; a low premium means a higher amount you'll pay out of pocket, whereas a higher premium will mean that you'll pay less when you need the coverage.

The formula used by the insurance company

While some factors in the price of insurance are within your control, others are not. Each insurance company has its own formula for how it determines the price of a policy. While the factors in the formula are often similar, the weight placed on each of the factors can vary among companies. It is for this reason that two otherwise identical policies from two different companies could have very different premiums.

As with any major purchase, the best way to get a good deal is to shop around. Take advantage of the fact that many companies are willing to offer free insurance quotes. This way, you'll have a better idea of whether the rate you've been quoted is truly a good deal.