Car Insurance Underwriting Questions

When you apply for car insurance you should be prepared to answer a huge number of questions. These questions are usually listed on insurance application. They are generally known as car insurance underwriting questions since they are evaluated by underwriters to assist in the creation of policy papers. 

These car insurance underwriting questions are used to assess the risk associated with issuing the policy to the potential customer and what premium rate shall be charged. Some questions seemingly might not appear relevant but the process of issuing insurance policy is a very detailed and complex one for which company needs answers to all sorts of questions. Especially if you are applying for a large financial coverage, car insurance underwriting questions can be extremely varied and detailed.

Objective questions pertaining to information like registered owner’s name, date of birth, marital status, driver’s license number and permanent home address shall be simple and straight forward. Other questions include vehicle garaging address which would be the place where the vehicle shall be parked essentially, household drivers’ names, date of birth, license and number years of experience. Information with regard to the vehicle is also very critical such as vehicle year, make, model, license number and odometer reading. For more than one vehicle annual mileage for each vehicle should be mentioned. 

Travelling information such as how long does it take to travel to and from work is also relevant. Other important questions that shall help to establish credibility of the person shall also be asked such as for how long has been the previous car insurance policy and its details like policy number and carrier name. Questions related to driving history are also important to help calculate the risk associated with issuing the policy. These questions include if the applicant has had accidents, both at-fault and non-fault, in the past 3 to 5 years, injuries afflicted, major or minor traffic convictions and driving license suspensions or revocations. Other questions that help gauge credibility include those related to occupational and professional affiliations. It is also good to know if the applicant has taken safety driving course. In case of student, his educational performance is also an important influence on the policy underwriting.

Texas Car insurance underwriting questions are extremely important as these are the basis of developing the policy and its clauses. Failure to create an effective policy would lead to problems for both the customer as well as the company. The biggest unfavorable consequence could be denial of claims that would have been fulfilled had the policy been framed accurately. Claims can also be delayed unnecessarily due to inappropriate policy writing. If the policy is not appropriate it would require renewal every now and then which could be very expensive. From the company’s viewpoint, the biggest problem resulting from poor underwriting could be paying out more claims than what they had projected. This could lead to bankruptcy of the company in case of which customers would have to look for some other insurance company which again involves time, cost and energy.

So it is best for the company to frame underwriting questions well and for the customers to answer them with maximum accuracy.  

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Created on Oct 12th 2017 05:22. Viewed 476 times.

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