Who and What You Are Counts To Your Insurance Company
Insurance companies are pretty nosy. They ask a lot of very personal questions. You have to answer them truthfully. Lying on an insurance application constitutes fraud and it could get you into a lot of trouble. But it helps to know what a good answer is and what a bad answer is.
When looking for a quote, insurance companies, of course, are going to ask for your name, address and age. They’ll also want to know your Social Security number and your car’s registration number. So make sure you have all this information ready before you call. Then they’re going to get real personal.
To begin with, they’ll want to know what you do for a living, if you’re married, and, if you’re not, do you have any roommates. Your answers to these can make a huge difference in your rates. They can even determine if you’re going to get a policy or not.
Take your occupation, for example. Insurance carriers have statistics on everything, including which occupations have more accidents. They believe what you do is directly related to how you drive. Certain occupations, such as pro athletes, military personnel and social workers, are considered high-risk. Some companies, for example, will reluctantly insure classical musicians, but never rock and rollers.
Your marital status is another personal detail that insurers pay close attention to when determining rates. If you’re in your twenties and married, they consider you to be as safe as someone in their fifties. But, if you’re single, your premiums are going to be at least 10% higher. They’ll also penalize you for being recently divorced.
If you’re single and renting an apartment, they’ll want to know if you have a roommate. If you do, they’re going to assume that your roomie borrows your car and charge you extra accordingly. They believe, for example, a woman living at home is a much better risk than one living in a dormitory or group apartment.
They’ll also ask you questions about your driving habits. How many miles do you drive each year? Have you had any accidents or moving traffic violations in the last five years?
For example, people who drive less than 7,500 miles a year, or less than 30 miles back and forth from work every day, get about a 15% to 20% discount with many carriers. If you have more than one car, be sure to ask for a discount on the ones you drive the least.
You also get a pretty severe penalty for each at-fault accident you’ve had in the last five years – as much as 10% for one, 20% for two and up to 50% for three. Speeding tickets also increase your premiums. Your insurer might let one pass, but it’ll depend how fast you were going. Keep in mind, though, that insurers are only interested in your driving record for the past five years. So there’s no need to tell them about accidents or tickets you had six years ago.