Nowadays, whether you do grocery shopping, plan to buy or do a car insurance renewal, everything happens just at a click. Even the enquiries that auto insurance providers conduct before issuing their car insurance take place at a click in the form of online questionnaires. But what questions do these insurance companies ask? And why?
In this blog, we shall look into the details of the inquiries posted by auto insurance providers and their purpose.
It is important to know that these questions also help you to decide the right insurance plan and rider needed for your car insurance. Adding a rider, for example, zero depreciation on car insurance to your comprehensive plan enhances the overall coverage.
What Questions Do Car Insurance Companies Ask and Why
1. Questions based on location -Where do you stay/Showroom which issued your car/Postal code/Address of your vehicle
The car insurance policy questions start with this question, which aims at the location of you and your car. These car insurance questions help to determine your car insurance quote, i.e., premium.
What makes this auto insurance question so important?
Your premium rate is decided based on where you live. For instance, if you stay in a metropolitan city, then the premium charged is usually higher compared to cars located in semi-urban areas or smaller towns.
Also, in those cities that have significant traffic issues or higher crime rates, the number of claims is typically higher, hence higher the premium.
2. Question based on your car model-manufacturing date/model you own, etc
You will be asked about the car model you own, its manufacturing, and vehicle identification number(basically details of your car).
What makes this motor car insurance question so important?
The insurance provider, when deciding on your premium rate, needs to consider your vehicle manufacturing date to understand the age of the car. The older the car, the more will be the premium and vice versa.
Further, your car model will influence the premium, as specific models may have higher repair costs or are at a greater risk of theft or accidents. For example, an SUV family car or big car will have more premium as compared to an economy four-wheeler.
3. Question based on usage of your vehicle
Your insurance provider may ask you about the usage of your vehicle, i.e., for what purpose your vehicle is used.
What makes this motor car insurance question so important?
You may come across this question while opting for insurance for a car, as this helps to understand the different levels of risk.
For instance, a person who drives several miles for business purposes poses a different level of risk as compared to a car that remains parked in the parking lot most of the time, which may be because you only use it to commute or for vacation.
4. Question on the yearly mileage of your car
Car insurance companies also keep track of your mileage, i.e., how much you typically drive in a year.
What makes these auto insurance questions so important?
The more time you spend on the road, the more level of risk your insurer will undertake.
5. Question on any anti-theft device or any other precautionary measure availed by you
While taking insurance for a car, your insurance provider may ask you whether you have an anti-theft device in your car, especially if you live in some risky zone. The type of safety device added also plays a key role.
What makes these auto insurance questions so important?
An anti-theft device is an extra level of security you install in your device, which means the level of risk is lower than the car which does not have it. You can ask for a discount if you are opting for the comprehensive plan, but the level of discount depends on your device.
6. Question if you CNG car -whether the CNG is pre-installed or installed later.
The fuel you use in your car is also an essential factor when determining the premium, i.e., whether your car runs on petrol, diesel or CNG.
What makes these auto insurance questions so important?
If you have a CNG kit in your car, then your insurance provider will ask you whether it is pre-installed, i.e., installed by your manufacturer or is externally installed. Your premium differs when you install CNG externally.
Conclusion
Always provide the correct information to your insurance provider, as it will make your purchase as well as claim processing journey easier.
Remember, every insurance company looks at risk while determining your premium. Hence, it is equally important for you as a buyer to compare the policies based on the features and pricing to make an informed decision.