When you plan to purchase a car insurance policy, you have to be prepared to answer a couple of questions from your insurer. Some of these queries are very straightforward, while other questions may be a little intense. However, there is no need to worry as it is just a standard protocol that insurance agencies follow to ensure that the policyholder will be able to pay up the premium, etc.
Let us look at some of those frequently asked questions:
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What is your zip code?
This particular question informs an insurer about the kind of area you are residing in. The deduced city areas inform such agents about the traffic and road condition in the area, which gives them a better evaluation of the premium rate for the buyer.
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Which car will you be insuring?
This is another important question where you will have to let the insurance agency know the details about your car. Such details may comprise of VIN (Vehicle Identification Number), type of fuel used, pollution papers, etc. This will let the insurer understand the condition of your car and evaluate old records related to the car regarding previous car insurance purchases or claims.
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Are You Single or Married?
It is a common question that insurers ask buyers before finalizing the paperwork for a car insurance policy. Technically, in countries like India, your premium is going to be a little less if you are married and more if you are single. One reason behind this is that married people drive with more caution compared to single people.
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What is your profession?
Another common question that lets the insurer understand whether you will be able to pay your premiums on time or not. Sometimes knowing the profession can give you a better discount on the premium rates, for example if you are defence personnel or a teacher.
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If single, do you have any roommates?
Single men or women tend to live with roommates, and this gives an idea of how the person uses his/her car. However, a more accurate deduction by the insurer depends on other answers as well. Nevertheless, living alone without roommates may or may not have any effect on the premium rate.
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How many kilometres do you drive your car periodically?
Usually, car insurance purchasers speak of less number of kilometres when letting the insurer know. The reason behind such an answer is that if we drive less, then there are lower chances of an accident. Thus, the premium rate for less kilometres is lower.
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Have you had any accidents in the past?
Sometimes the insurance agencies ask directly about any accident that the policyholder may have had in the past. This way they get a better chance of understanding the way the buyer uses his/her car. In some cases, such attributes are also there to crosscheck the details for better calculation.
Conclusion:
No doubt there are many criteria by which car insurance providers check your background before providing an insurance. However, as a car owner, it will be wise to understand that these are mere formalities. All this is done to ensure that they give their 100% to the customer with accurate policy premium rates.