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

Choosing to price-shop with several agents is the most economical way to obtain insurance because it allows you to compare different policies, coverages, and premium rates. By canvassing multiple agents, you gain insight into varying offers and can identify the best value based on your specific needs. This process not only encourages competitive pricing among insurers but also helps to highlight any additional benefits or discounts that different agents may offer. In contrast, opting for a single agent or dealing with only one insurance company can limit your options and may result in higher premiums. While it might seem convenient to work with one agent or company, it does not guarantee the most competitive rates or the best coverage available in the market. Frequent changes in insurance companies might initially appear to offer savings, but this approach can lead to gaps in coverage or possible issues with loyalty discounts that are often provided for long-term customers. It may also complicate the claims process, as building a rapport with an insurer can be beneficial when navigating claims. Overall, by actively comparing offers from various agents, you can make an informed decision that aligns with your budget while ensuring adequate coverage.