Why Car Insurance Companies Ask Such Random Questions to Drivers Looking for Quotes

Cars

Car insurance companies ask the most seemingly random questions of drivers, don’t they? It seems as if the car insurance companies of the world are looking for a way to ask questions that will really make your life complicated and annoying, considering the fact that you don’t know the answers to some of them right off the top of your head and those you do know actually seem kind of ridiculous. This is especially true when you are just looking to find a few quotes for a new auto insurance policy. When this happens, you want nothing more than just to fill out a quick, simple form, get some quotes and try to decide which car insurance company is going to give you the best deal so that you can save the most money. It’s not brain surgery, so why do car insurance companies make getting a quote feel so much like it?

The answer is simple; care insurance companies are looking for specific information. They might ask you a question that seems kind of off-the-wall when you’re looking for new car insurance quotes, but they want to know the answers to these questions for very specific purposes. Read on to find out just why your insurance company wants specific information. It might help you when you’re on a mission for your new policy.

Who Cares if I Own My Car or Lease It?

Both car insurance companies and banks care about the answer to this question. A car you own could have a lien on it that you’re working to pay off, but a lease is a car you will pay for until it’s time to get rid of it and get a new one. This means you need different coverage to protect that car from different damage and instances that could occur when you’re driving. Chances are good that if you lease, you’re going to pay a lot more for your car insurance than if you own your car outright – or will own it outright when your payments are over. In some cases, drivers try to fib to their insurance agencies about the ownership of their vehicle, but the VIN number you have to provide will tell them immediately that you lease, and they will change the quote they gave you.

What Do the Security and Safety Devices in My Vehicle Matter?

Here is one of those situations in which you want to make sure your insurance company knows about when you’re looking at car insurance quotes. Certain safety features and security devices in your car can actually lower your policy and premiums, so be sure to inform agencies with whom you are applying for quotes know all the different specs that your particular vehicle comes equipped with. These are vehicles that typically result in fewer injuries and burglaries, so insurance companies aren’t required to pay so much for them in the long run because they’re safely equipped.

They Really Don’t Need to Know How Far I Drive Each Day, Right?

Wrong. Your car insurance company will ask about this, and it’s a good idea to be honest. When you’re being quoted a price for car insurance, this is one of the first questions that will be asked of you when you begin the application process. This question is very important, because it will affect your rates. Insurance companies charge higher premiums for drivers who commute many miles each day on the simple fact that these are people who spend more time on the road. More time on the road theoretically means that you have an increased amount of time to become engaged in an accident and require the insurance company to make a large payment. It’s all a matter of insurance (see what we did there?).

Why Do They Care about My Current Car Insurance Company Name?

Here’s a good question. It doesn’t seem to make sense that a new company would ask who you are currently insured with since you’re looking to change. However, there is a purpose here, and it’s a very interesting one. When you apply for a quote for a new car insurance policy, insurance companies use this information to see what kind of driver you are. You might not be familiar with this information, but most car insurance companies only insure certain types of drivers. For example, if your current company is well-known in the insurance world as being one that primarily deals with high-risk drivers, you might automatically be quoted a higher price.

Other companies use their customer’s credit scores to determine insurance, and if you have a policy with a company that does this, your new quote will reflect a lower rate (most likely). It all depends on what you have now, what kind of policy you carry and what that says to other insurance companies about your driving habits.

Does it Matter How Many People in My Home Have a License?

Yes, yes this matters very much. Car insurance companies want to quote you properly and adequately, and they need to know how many people 1) you’re looking to insure, and 2) how many other people might at some point be behind the wheel of your car. This is especially important if you have teenage drivers in the home, elderly drivers in the home, or more than the standard 2 drivers in the home. Your policy must include all drivers if they are to drive your vehicle, or else you could get into some serious insurance trouble should an uninsured resident of your home wreck your vehicle.

Each of the pieces of information required by insurance companies when you are looking for new quotes and rates is used to determine what kind of driver you are, what kind of coverage you might need, and what kind of risk you might present as an insured driver to this company. They are in this business to make money, even though they do work in insurance. The higher-risk drivers will pay more to make up for their losses over time.

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