Insurance Companies ask Questions.
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You want to answer them as truthfully and as " brief " as you can.
Listed are some common questions on insurance forms and overview of what insurance
companies are looking for. Each company has their own underwriting department,
another big reason to comparison shop as many insurance companies as possible. It doesn't
hurt to know which answers will cost you and which won't.
Beside the regular name, address, age etc. You'll be asked you SSN (Social Security number)
and VIN (vehicle identification number). You want to have those two numbers available,
without them, the insurance company will be unable to obtain your claims history, and
without that, they won't activate your policy.
Answer questions as truthfully and as short
to the point as possible
Don't expound or volunteer any information that is not
asked for.
I've had people talk themselves into higher premiums or rejection
by
volunteering information that would not have been asked.
Have you asked someone the casual question, how are you
doing today and they tell you, for
the next 30 Minutes.
You were being polite, right.
You were expecting the answer
"Fine"
instead you got their life history.
The point is:
Answer as short and to the point as possible.
How Much Coverage Do You Need?
Auto insurance policies normally have several sections, but only three are
mandatory in every state:
liability per person, liability per accident and liability for someone else's vehicle.
Most states require drivers to take $20,000 to $30,000 of liability per person in an
accident, with a cap of $40,000 to $60,000 per accident. That may not enough for some
people (see How Much Policy Do You Need?). If you have more than $100,000 in assets, you
should raise your coverage to $100,000 of liability per person and $300,000 per accident,
plus $100,000 for property damage.
If you have over $200,000 in assets, you want to consider an umbrella policy that covers anyone injured in your house or car up to $1 million or more. Chances are you don't need coverage such as medical payment, rental car insurance and emergency replacement. Such costly "add ons" are often redundant. Many insurance companies offer these extras. Also many will drop or raise your premium if you make a claim on such coverage.
Are You Married?
In the insurance world, if you're 25 and married, you're as safe as a 55-year-old. If
you're not, Auto insurance will cost you more. (sorry singles) Young singles typically pay
at least 10% more for car insurance than their married peers. Being divorced also hurts
with some companies.
What Do You Do for a Living?
On the theory that what you do says a lot about how you drive, insurers keep detailed
occupational data. A study by the Texas Public Insurance Council found 19
occupations that insurers associate with above-average risk, including social workers,
professional athletes, musicians, military personnel and longshoremen.
Do You Have Any Roommates?
This is a common question asked by insurance companies when they're dealing with a single
person who rents. The companies are attempting to find out if these people have roommates
who might drive their car.
How Many Miles a Year Do You Drive?
The answer to this question will have a big impact on your rates. Insurance company
Actuaries (Super Bean Counters that the insurance companies have on staff that do
continuing research in statistical data) shows that people who drive more than 7,500
miles a year, or more than about 30 miles to and from work each day, are more likely to
get in accidents.
You know the joke about the man who heard that most car accidents occur with 25 miles of
home--- So he moved.
Have You Had Any Accidents or Moving Violations in the Past Five Years?
The companies are looking to rate you for your driving history, and the penalties are
stiff.
Speeding will cost you more than the ticket. "Speeding tickets to an Insurance company are a indicator of future accidents, "the insurance company might let one ticket slide, depending on how fast you were going. They would rather see someone going 80 mph in a 70 mph zone than someone going 55 mph in a 25 mph zone. Actuaries (Super Bean counters again) are human, each one has their own thinking process within their guide lines and is another big reason to get auto insurance quotes from as may different companies as possible. One thing to remember is that most insurance companies "look back" from 3-5 years. If you had an accident or other violations, well keep quiet about them.
Have You Made Other Damage Claims Other Than an Accident?
Insurance companies are increasingly looking for people who excessively make claims for
glass breakage or other claims - theft - fire loss - vandalism - etc. on their car. They
can find most every claim. Most insurance companies report to Equifax's CLUE
(Comprehensive Loss Underwriting Exchange) service, which keeps a database of all claims.
When you apply for a new policy, an insurance company will some times order a CLUE report to check out your record. Three or more qualify you as a bad risk.
If you want to see your CLUE report go to www.choicetrust.com Click on "Home" on the main menu and choose "Insurance Claims" A link at the bottom of the page allows you to download an application from titled "Request for ChoicePoint Consumer Reports. Send the completed form along with an $8 check. If you disagree with the information in your report, call (888) 497-0011.
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