Why Do Insurance Agencies Charge a Fee for a Quote?

Why Do Insurance Agencies Charge a Fee for a Quote?

Perhaps you own a small business and decide you want to reward your hardworking employees by offering health insurance. Before your insurance agency even looks at your information and runs an insurance quote, they ask for a $100 upfront fee.

Perhaps you had a difficult year and had to make three claims through your auto insurance. Your insurer cannot cover you anymore, but you can’t afford the alternatives. Your insurance broker offers a policy change. However, there is a fee involved and you’ll need to pay in cash or through installments, even though you are struggling to keep your head above water after what you had to pay out-of-pocket.

At David Pope Insurance, we hear this question often: “Why do insurance agencies charge a quote fee?” Some businesses and individuals are genuinely confused about why carriers offering car insurance, home insurance and other solutions wouldn’t offer no-cost quotes. “Don’t they want our business?” we’re asked.

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Why David Pope Insurance Offers a Free Insurance Quote

Unlike many competitors, we offer free insurance quotes. In fact, we feel it’s immoral not to. We understand many people coming to us are hardworking or may be facing financial challenges, and we strongly feel it is wrong to charge them extra for it. An insurance quote is a service we offer to help you determine whether you want to go with our insurance services. Charging a fee may be a deterrent for less interested insurance shoppers, but it should not be a standard for insurance agencies. By charging that fee it is taking from you. We want to provide the best insurance for the most affordable price.

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Why Other Companies Charge You for an Insurance Quote

Insurance brokers are company employees charged with making their corporation money. Corporations have shareholders who are happiest when profits are high, and charging additional fees is one way to ensure this.

Why Do Insurance Agencies Charge a Fee for a Quote?

In addition, some insurance agents become jaded with clients who pay for one month and let their car insurance policy lapse after the car is licensed. Quite simply, they want to get paid no matter what. In fact, these companies get paid more if clients come back multiple times for quotes because they allow their car insurance to lapse. Letting your car insurance lapse is illegal and the cost of driving without insurance is financially detrimental. You may save money for a few months, but you’ll face significant fines and bills if you have an accident. We can provide you with a free quote so you have money to spend towards being insured so you don’t have to let your insurance lapse.

Another reason insurers charge a fee is because they may feel they make too little on small insurance policies. If they sell an insurance policy at $300 a year, this means they only make between $20 and $45 annually from that client. The fees for quotes are one-way agencies shore up profits on smaller clients.

The David Pope Insurance Policy on Insurance Quotes

Our organization believes in saving everyone money and in offering the best rates with no fees charged for quotes. Everyone gets a free insurance quote. We feel this is the right thing to do, especially since we know for some clients, even a modest quote fee can make getting insurance more daunting. In addition, we understand no insurance agent will get rich from one client, and we believe everyone deserves to be treated with professionalism and get our VIP client treatment, whether they need $300 or $300,000 in insurance coverage.

If you cancel or lapse on your insurance in the first six months and then seek another quote from us, you will still get a free quote and our best rate. However, you will need to pay your car insurance policy six months in full. If you cancel or lapse again, we will likely decline to offer another quote. We strongly believe it is unethical to allow people to drive illegally and we care if our clients are driving without auto insurance.

Another reason why we don’t charge insurance quotes is that we know it’s good business to serve our customers to the utmost of our ability. We feel the insurance industry as a whole needs to change its thought processes about customers. A happy client who gets a free quote can refer friends or a home/auto umbrella condo client. No matter what, our clients in Missouri, Arkansas, Iowa, and Kansas deserve the best, and we are happy to deliver.

Why Do Insurance Agencies Charge a Fee for a Quote?

What You Need To Obtain An Insurance Quote

It’s important to prepare the necessary information before requesting an insurance quote. Gathering these details ahead of time can make the quote process proceed more smoothly.

Most insurance providers will need personal details about you to process an insurance quote fee. For instance, they might ask for information like:

  • Personal contact information: If you become a registered user with the insurance provider, they need a way to contact you about payments and other essential updates. You might need to supply your phone number, email address or other crucial contact information.
  • Home address: Providers might also request the information for your permanent address. In particular, many auto insurance agents need to know your vehicle’s registered location. They also use the address you provide to ensure other information on your application is correct. For instance, they can research the address to see if it features certain assets or nearby risk factors.
  • Coverage history: You might also have to submit information about previous and current insurance coverage policies. These details could include policy types, provider information and effective dates. In addition, agents might ask for your history of claims during the policy usage.

For auto insurance quotes, you need specific details about your driving history and vehicle type. For example, the provider might ask you for information about the following:

  • Your driver’s license number
  • Vehicle identification number (VIN)
  • Vehicle year, make and model
  • Estimated weekly mileage

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Home insurance quotes might require home details like:

  • Property history: Details about property history help agents determine your policy. They might ask for the date the home was built and when you plan to move in. You may also need to provide information about the home’s square footage and style; the presence of detached structures, basements or attics; or any other assets you have on the property.
  • Risk factors: Insurance agents also need to know about risk factors on your property. These components can affect the amount of coverage you need. For instance, you might have pets, a pool or a body of water near your home. These features might put your home at a higher risk of damage.
  • Your household: You might also need to supply information about other household members. Providers might ask about your marital status, number of children or if you own pets. Other household factors can affect your insurance policy. For instance, if you run a business from home, this might affect your quote.
  • Safety features: Some safety features allow you to qualify for discounts on your insurance. For instance, you might have in-home sprinklers or a security system.

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You might provide these same details to several insurance agencies but receive a range of different quotes, even from the same insurance carriers. These differences often occur because of these two reasons:

  • Agents using different limits: Different insurance types have limits, which are the amounts your insurance provider would pay when you file a claim. Total limits vary by policy and insurance type, and agents might use different amounts when determining your quote.
  • Agents applying various deductibles: Agents might use different deductibles when deciding your quote. Your deductible is the amount you have to pay before your provider assists with coverage. Usually, you can choose from several deductible options. Agents might apply different amounts while determining your coverage, causing different quotes.

It’s important to request quotes from several sources before committing to one. That way, you can view different costs and decide on the best fit. Free insurance quotes become even more valuable when you browse many options because you save on overall costs.

Why Do Insurance Agencies Charge a Fee for a Quote?

Request A Quote From David Pope Insurance Today

If you’re looking for an insurance agency with no quote fees, choose David Pope Insurance. We are committed to helping clients discover a customized and affordable insurance plan. Our free insurance quotes can assist you with finding the best fit without extra fees. Whether you need auto, home, life or commercial insurance, our experts can help.

To get started with David Pope Insurance, request a free quote for yourself or your small business today. Or contact us with any insurance-related questions.

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