What is a Competitive Estimate? - Insurance Navy. A competitive estimate is when an insurance company requests a price list of multiple cost estimates from different companies or contractors. This request is used to compare bid estimates and price reasonableness. When an insured party files a claim, for instance, for property damage, the insurance company may require a competitive estimate from different.
This means the insured party would need to obtain multiple construction cost estimates from other building contractors for the repair work. The insurance company then compares these estimates to determine which contractor has the most reasonable prices for the entire project. Similarly, when an individual or business seeks insurance coverage, they may gather competitive estimates from different insurance providers. This allows them to compare the coverage options, premiums, deductibles, and other terms to choose the most suitable insurance policy.