What kinds of insurance questions should I be expected to answer when I am applying for an insurance policy? Why do insurers need so much information?
When you apply for an insurance policy, you will be asked several questions. For example, the agent might ask you your name, age, gender, address, etc. In addition, you will be asked some other questions that will be used to determine how likely you are to make a claim.
When an insurance company is deciding whether or not to offer car insurance to a potential customer, they will want to know about the person’s previous driving record, whether the driver has any recent accidents or tickets, and what type of car is to be insured.
Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. To determine which program you qualify for, an insurance company needs basic information about you.
In addition to your age, gender, and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact; and, someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work and drives only on weekends.
What are the advantages of using an agent to purchase insurance?
By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and necessary when filing a claim. A local, independent agent can deliver quality insurance with competitive pricing and local personalized service.
When is it time to update my coverage?
Insurance is really about protecting the things important to your life, both personal and business, against the unexpected. So, anytime you have significant events or changes in your life, it’s time to think about your reviewing and updating your coverage. Here are some examples:
Personal
- A change in marital status
- A new baby
- New drivers in your household
- Kids going away to college
- A new job or starting a home business
- Changes in your income
- Paying off a car loan
- Buying a home
- Moving to a new apartment
- Home improvements
- Approaching retirement
- Purchasing jewelry, antiques, computer equipment, or other expensive items
Business
- Starting a new business
- Increase your workforce especially if you exceed 10 full-time employees (or the equivalent of).
- Seasonal increases in inventory
- Loss of employees to other companies.
- Expansion plans – equipment, vehicles, or physical plant
- Business owner approaching retirement
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