Will Older Car Insurance Quotes Expire Or Be Honored
Reader’s Question:
Will the cheap car insurance quote I got two years ago be honored by the company who gave it?
Tiffany
Charlotte NC
Cheap car insurance quote computation are based on current information provided by a motorist. A lot of things could happen in a span of two years, such as the driver being involved in minor or major accident or the driver getting married or divorced. So, the answer is a no. It will be foolhardy for an insurer to honor a quote given a couple of years back. If an insurer is in a habit of accepting cheap car insurance quotes given two years ago, it will not be doing a sound business practice. It will likely endanger its business because of the risks it has overlooked like the car’s present condition and the driver’s record within that period. There is also the inflation factor, which actuaries incorporate in the computation of premiums. Inflation makes today’s cheap as yesterday’s expensive. $100 may be small today but five years ago, its buying power was definitely higher. In insurance, the computation of that cheap car insurance quote in the past was based on market dynamics that were present during that period. Market changes and goods and services are likely to go up as time passes. No insurer would be happy to sell a $25,000 insurance at a price that is way below the current standard.