Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the most economical way to obtain insurance?

Choose one agent who handles all lines of insurance
Price-shop with several agents
Deal with only one insurance company
Change insurance companies frequently

The correct answer is: Price-shop with several agents

Price-shopping with several agents is considered the most economical way to obtain insurance because it allows consumers to compare prices, coverage options, and policy features from different insurers. By gathering quotes from multiple agents, individuals can identify the most competitive rates and best terms that meet their needs. This approach leverages market competition, which often results in lower premiums and better coverage. Agents may offer different discounts, and one might have tailored options that fit a specific risk profile better than another. Choosing just one agent who handles all lines of insurance may lead to limited options, as that agent can only provide the rates and products from the companies they represent. Dealing with only one insurance company can also restrict options and might not result in the best pricing. While changing insurance companies frequently might seem beneficial in theory, it can lead to difficulties in establishing long-term relationships and building a claims history, which could affect future rates.