Glossary / People & market / Quote

Quote

People & market

A carrier's offer to provide coverage at a specific price and terms.

A quote is a formal offer from an insurance carrier specifying the coverage, limits, deductible, exclusions, and premium they're willing to provide. Quotes are typically valid for 30 days and are not binding until you accept.

Where you'll see it

Quote

Why it matters for your business

  • Comparing quotes requires looking beyond price—check exclusions and sublimits.
  • Quotes expire; don't wait too long to bind.
  • Your broker should explain the differences between competing quotes.

People also ask

What is an insurance quote?

An insurance quote is a formal offer from a carrier specifying the coverage they're willing to provide, including limits, deductible, exclusions, and premium. The quote outlines the exact terms and price based on your application information. Quotes are typically valid for 30 days and allow you to compare options before committing to a policy.

How long is an insurance quote valid?

Most insurance quotes are valid for 30 days from the date of issue, though this can vary by carrier and policy type. After that period, the carrier may need to re-underwrite your application with updated information, which could result in different terms or pricing. If you need more time, contact your broker before the quote expires.

Is an insurance quote binding?

No, an insurance quote is not binding on either party until you accept it and the carrier issues coverage. A quote is an offer that outlines proposed terms and pricing, but you're not obligated to purchase and the carrier can withdraw it before acceptance. Coverage only begins when you accept the quote and receive a binder or policy.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.