Insurance is a financial safety net protecting people from financial hardships in emergencies. Consumers select insurance policies based on their needs and pay monthly premiums for coverage. The insurance company pays benefits if the client files a valid claim.
There are multiple types of insurance, including life, auto, liability, and homeowners insurance. Finding information about policy options can be challenging with so many types of policies and insurance companies to consider. Fortunately, you can access free quotes online using an insurance comparison tool. Let’s look at the policies you can receive quotes for and how the tools work.
How do insurance comparison tools work?
Head to a website that offers free insurance quotes and select the type of policy you need. Use their comparison tool to generate a list of policy options. The tool prompts users to verify their age, location, and insurance needs. You’ll identify your gender and confirm your credit score.
Depending on the type of policy information you’re seeking, you may answer general health questions. Suppose you’re looking for a policy that will pay benefits to your dependents when you die. The tool will ask for your height and weight. It also asks if you have serious health issues, such as cancer or diabetes. Users must indicate whether they smoke or engage in dangerous activities such as skydiving. Those looking for homeowners insurance are asked how many claims they’ve filed in the last three years. Users seeking auto insurance must also indicate how many claims, accidents, or traffic tickets they’ve had in the last three years.
Once you’ve answered the questions, the tool eliminates companies that don’t offer suitable policies and compiles a list of policy options that meet your needs. You can use the list to compare policy terms and contact the insurance company for additional information. Instead of spending hours calling multiple insurance companies, you can narrow your list to the most affordable comprehensive plans that fit your budget and coverage needs.
What types of insurance can you receive free quotes for?
Life insurance pays benefits when the policyholder passes away. The policyholder’s beneficiary receives the death benefits, enabling them to pay for their final expenses, resolve outstanding debts, or cover their living expenses. It’s common for adults to acquire this type of insurance to prevent their spouses or dependents from suffering financial hardship if they die unexpectedly. Despite the benefits of having this type of insurance, almost half of all Americans don’t have a life insurance policy.
Permanent life insurance policies include a savings plan, allowing policyholders to increase the benefit amount. Policyholders can also borrow money from this fund. The policyholder can also sell their insurance policy if diagnosed with a terminal illness. When policyholders pursue a viatical settlement, they can use the funds received from the buyer however they choose. The buyer selects a new beneficiary and pays any outstanding policy fees.
Car accidents are responsible for tens of thousands of deaths each year. Millions more are injured in auto accidents, and even safe drivers can get into accidents caused by poor driving conditions or other drivers. Lenders require car owners to have valid auto insurance. Car insurance can cover the cost of repairs or pay to replace a totaled vehicle. Auto insurance policies also cover some medical expenses stemming from the accident.
Homeowners insurance protects your home and its contents. Suppose lightning strikes your home, damaging your roof. Your homeowner’s policy pays for the repairs and pays to replace damaged possessions. Homeowners’ insurance also provides liability coverage. Suppose you haven’t cleared your sidewalk after a winter storm, and someone slips and falls. Your policy covers your legal fees and settlement costs if they sue you after the accident.
Insurance comparison tools make getting free quotes from multiple insurance companies easy. These tools can help you find life, auto, or homeowners insurance quotes in a matter of minutes.