One of the very early signs of a scam is whereby the customers seeking insurance are asked to pay a fee for making an inquiry. The basic principle of the industry is that everyone is entitled to a free auto insurance quote. This is not an issue that can be negotiated upon as a matter of principle because one would expect that the quotation process is taken to be an inquiry. The provision of a free auto insurance quote is a matter of course and the customers should be able to demand it.
Free Auto Insurance Quote Benefits
The benefits of providing a free auto insurance quote is that it opens up the market to many consumers who might not like to make a payment for the privilege of merely inquiring about the insurance services available. It is a grave mistake to make demands for payment when it comes to insurance before the person has bought the policy. Good company policies should mean that all customers automatically get a free auto insurance quote. It is from this quote that the business relationship can be slowly built until the company will have a lifelong customer to depend on.
Free Auto Insurance Quote Advertisement
It has become common practice for various elements of the insurance industry to advertise the free auto insurance quote as one of the benefits of having services with them. That is a good sales technique but it has little practical relevance to an industry where the free auto insurance quote is practically the order of the day. In fact the companies which dare to charge for the quotes might be driven out of the industry because the competitors will snatch the customers from them. That is why it is far better to look at the free auto insurance quote as matter of course.
Free Auto Insurance Quote Downsides
For the insurance company the provision of the free auto insurance quote is a cost in as much as there is no guarantee that those people who have requested the quote have any intention of actually buying the insurance in the final analysis. The reality is that many of the quotes never materialize into real purchases. Thus the free auto insurance quote might end up being a burden on the company that is trying to sell insurance in the long run.
Free Auto Insurance Quote Conclusion
We have to think of the free auto insurance quote as an incentive to get the customers onto the insurance books. It is a hit and miss game where the customers might not pick up the insurance on time or where they might ignore the clear advice of their brokers but in the end they might end up buying from the company. Thus the free auto insurance quote is an acceptable risk. It is also standard practice within the industry because a quote is taken to be equivalent to an inquiry about the services available for the insurance buyer.