Why do insurance companies ask all the upfront questions during a car insurance quote?

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Why do insurance companies ask all the upfront questions during a car insurance quote?

Marissa Hayes is a technical editor and contributing writer for Insurantly.com. She holds a Bachelor’s Degree in history, and she was the editor of the literary...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance...

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Reviewed byDaniel Walker
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UPDATED: Mar 23, 2020

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What’s With All The Questions During An Auto Insurance Quote?

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Why do car insurance companies ask so many questions when getting a quote?

When you’re shopping around for car insurance, you’ll need to answer some questions upfront. Some may be obvious ones, such as your driving history, but others may be a little more unexpected, such as questions about your education. Insurance companies are asking for this information to determine if you’re eligible for insurance, and if so, at what rate.

It’s important to be honest and thorough when answering so you’ll be able to get an accurate quote. The insurance company will conduct a process called underwriting that investigates your information, and if you’ve provided inaccurate or incomplete information, your policy could be denied, or your rate could change.

Common Auto Insurance Questions

The following are some common questions that insurers ask when you’re seeking a car insurance quote:

What’s your zip code?

  • This verifies that a particular company offers coverage in your state. Where you live also helps determine the rate you’ll pay. In general, metropolitan areas tend to have more traffic and crime than areas that are more rural, so you’ll pay more.
  • The greater the value of your vehicle, the more expensive it can be to insure. Cars that have good safety ratings can be less expensive to insure.
  • Statistically, the more miles you drive, the more likely you are to be in an accident. In some cases, you can qualify for a discount if you drive your vehicle infrequently or for relatively few miles a year.

What do you use your car for?

If you use your car for business purposes, you may need a different type of auto insurance. This doesn’t include commuting to your job, but instead refers to using your vehicle to perform your job, such as a salesperson who travels to see clients.

What is your age, gender, and marital status?

This information helps an insurer determine how safe of a driver you’re likely to be. This is based on statistical averages rather than your individual situation. Younger people, men, and single people typically have to pay more. However, your individual driving record has more influence on the rate you’ll pay.

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Do you own your car?

If you’re financing or leasing your car, you may need specific types of coverage that are required by your lender or the company that leased you the car.

What is your occupation?

Certain professions, such as teaching, may qualify you for a discount.

What is the highest level of education you’ve completed?

Depending on the level you’ve reached, you may qualify for a discount.

Do you have any driving violations on your record?

This factor is more important than many others, such as age, that are beyond your control. Companies vary in the number of years they consider, but if you have a large number of violations, you’ll likely pay more than a driver with a “clean” record.

Have you had an accident or filed an auto insurance claim?

An insurer will want to see how much of a risk you’re likely to be. If you’ve had a lot of accidents, especially ones that were your fault, an insurer may view you as a high risk, and you’ll pay more.

Do you currently have insurance?

If you have insurance and have maintained it continuously, you may qualify for a lower rate. These are just some of the questions insurers may ask, but keep in mind that the more complete and accurate the information you give is, the more accurate your quote will be.

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