What does a quotation in insurance typically show a prospect?

A quotation in insurance primarily provides a prospective policyholder with the premium for the proposed coverage. This document is essential because it outlines the cost associated with the insurance policy that the insurer is willing to offer based on the information provided by the prospect. It encompasses the specific risks being covered and can reflect various factors that influence pricing, such as the type of coverage, the insured's history, and the amount of coverage requested.

While a quotation can certainly mention the risks covered, policy limitations, and length of coverage, the most immediate and impactful information that a prospect seeks when reviewing a quotation is the premium amount. Understanding the premium helps the prospect assess whether the insurance policy fits within their budget and meets their financial needs, which is often the first step in the decision-making process regarding insurance.