Things Auto Insurance Companies Check before Giving You a Quote


Many people who buy auto insurance are not aware that the insurance company checks through the applicant’s records thoroughly before they decide to give the person a quote. While many people argue that there is nothing much that can be done about a background check the fact is that by knowing what things are checked you can straighten out your records before renewing your insurance policy. The following paragraphs will elaborate on the most common and crucial things that auto insurance companies check before giving you a quote. 

Financial Records 

Your financial records consist mainly of your credit report and credit score. Your credit report has details of the credit cards you own, the amount of debt you have taken and if you have missed any late payments or not. Your credit report also other important financial details such as if you have filed for personal bankruptcy or not. 

Your credit score is made using details from your credit report and your credit score is a numerical summary of your credit report. Insurers use the information on the credit report and credit score to check if you are a good candidate or not. The information on these documents help auto insurance companies understand if you are likely to miss payments, if you are likely to default or if you are likely to go bankrupt. Depending on the conclusion the insurer will offer you a high quote or a low quote. Some insurance companies do not issue policies to people who have a very bad credit score. 


Property Predict R is a new score issued by the Fico and this score is given to insurers who plan to insure your home, life or your vehicles. While many auto insurance companies may not give this score a lot of important this score is definitely used to decide the amount of premium you will pay. 

Claim History 

Your claim history is one of the most important things checked by auto insurance companies before they give you a quote. Your claim history contains information like the number of claims you have submitted in a year, the total number of claims you have submitted till date and the number of accidents that have been committed due to your errors. People who file a lot of claims and people who have a large number of fault accidents on their record are offered high premiums. Some insurance companies reject such applicants because they feel that the applicant does not make a good candidate. 

Straightening your Records 

If you are interested to get a low insurance premium then you should consider straightening your records. The first thing you should do is to pay off as many debts as possible and to improve your credit score. You can improve your credit score through credit consolidation. You can reduce the number of debts you have through debt consolidation. The next thing you should do is to count how many claims you have submitted over the past 7 years. After that you should make it a point to submit only the claims that you cannot pay for. If you can manage to get your car repaired on your own after an accident then you should consider doing so since any claim you file goes on your permanent record.