When a person applies for auto insurance, they likely do so knowing that their insurance companies are going to look up a large amount of information about them before accepting their request for coverage. With that having been said, however, many consumers often don’t know exactly what kind of data their potential insurers could be pulling, and might not be prepared to put themselves in a position to obtain the best possible terms on their coverage. Therefore, insurance agents should make efforts to reveal to clients who are applying for new types of coverage – or would recommend it their friends – exactly what this process looks like.
In the past few months, auto insurance companies’ use of consumers’ credit ratings when determining their eligibility and costs for coverage has been in the news a lot, but far more than just that three-digit number is taken into consideration, according to a report from MSN Money. Auto insurance companies also pull data that will help them to determine that the applicant gave them completely accurate information when signing up, such as property ownership, whether they’ve ever filed for bankruptcy, had criminal charges, and so on. Further, they also – and perhaps obviously – look into whether that person has been involved in any accidents or received traffic tickets.
What else can be done?
Insurers also check to see whether there might be any people living in the applicant’s home who might use their car on occasion – such as a younger relative – but who was not disclosed in the application process, usually because they didn’t think that would have an impact, the report said. Insurers also tend to check with each other to find out more information about the driver in question and what that person is paying for the policy, including premiums, deductibles, limits, discounts, and so on. They also try to find out exactly how much the applicant uses their car to drive around every week, month, or year, to determine whether that poses any additional risk.
Insurance agents who can take the time to explain to clients why all this is important, and what it could mean for them if they’re able to improve their standings in any way, could see improved business. Consumers tend to feel very strongly about companies that can provide them with high-quality customer service and help them to better understand their coverage. As such, the more that can be done in this regard, the more customer satisfaction they might see going forward.