Insurance companies often collect numerous volumes of information about their clients for purposes of assessing the risk score of the client. During the process of filling out the insurance application forms, clients will be requested to sign it to give consent to the provider to collect the information. Below are some things that your auto insurance company knows about you.
Your Credit HistoryMost of the auto insurance companies will run a soft credit check on you to determine your credit history. Why should they do so? In the US for example, there is a direct correlation between credit history and claim frequency. In some places, auto insurance companies will deny you insurance cover based on your credit history. They don't want to deal with a high-risk client.
Your Past Insurance ClaimsOne thing you need to know is that your past auto insurance history follows you to whatever place you may go no matter how often you may change insurance companies. This is the reason why some drivers who have ten years of claim-free coverage history will get a discount when they purchase a cover.
On a negative note, some insurance companies will penalize you for a claim that may date back to six years ago. However, you don’t travel with your insurance history to foreign countries. If you feel like you are being penalized unfairly in a new country where you have no claim history, feel free to get a letter from your previous provider that shares your clean claim record. Annual MileageWhen filling any auto insurance application, you will be required to provide information regarding how many miles you drive on a yearly basis. The number you provide plus other factors usually help the insurance provider in assessing your risk on the road. If you are covering more miles, then it means that you are at a higher risk of being involved in an accident.
Vehicle HistoryThere is no way you are going to hide your vehicle history from your auto insurance company. Insurance companies can quickly pull up a vehicle history using the car's VIN. However, the providers usually don't check every vehicle that they insure. This is done randomly, and such information will always come up during vehicle inspection.
Your Criminal RecordInsurance companies are also concerned about your criminal record if you have any. An insurance company can deny you insurance cover based on your criminal record just like the credit history. Insurance providers are interested in knowing whether you have committed any criminal record before and how it relates to the coverage policy you want to purchase.
The Insurance Company Knows About any Other Driver in Your HouseholdWhen filling out the insurance application form, you will be asked whether any other licensed drivers in your household may have access to your car.If another driver with a worse driving history will be having frequent access to the vehicle you want to ensure, it will affect your premiums.
Your Marital StatusFinally, insurance providers will ask you about your marital status. The provider wants to know whether you’re single or married since statistics indicate that married people tend to take fewer risks when driving compared to singles.