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Who is your 5th cousin, 15 times removed – and other seemingly useless questions!

October 20, 2009
Cindy Donaldson, Marketing Director - Founders Insurance Group

Cindy Donaldson, Marketing Director - Founders Insurance Group

Our producers hear it all the time: “Why do you need all this information to give me quote on my auto insurance?” First off – at Founders, we don’t give quotes – we give proposals, but that’s another blog.

Here is the skinny on why we may not need to know your 5th cousin, 15 times removed (whatever that means!) but we do need other personal information to give you the most accurate proposal.

The majority of insurance carriers use complicated modeling systems to determine the rate they offer our clients. They plug all the information we give them into a massive formula – all of their formulas are different by the way, hence the vast difference in prices we often see – and they spit out a premium amount.

Let’s start with Personal Auto Insurance. Here are key things most carriers are looking at – the evaluation of these factors will often time affect the rate of premium you are offered: iStock_000008993070XSmall

Credit Score – the biggie! The higher your credit score – the better the premium. Why? They feel someone with a higher credit score is more responsible, is not as much a risk taker and in turn is a better risk for them to take on. This is also why we ask for your social security number.

No lapse in insurance – another biggie. Carriers feel that if you have continual insurance coverage you are more responsible and in turn are a better risk. Some will want to know how long you have had your current coverage and your current limits

Teen Drivers For obvious reasons – carriers charge quite a bit more for young drivers. They are a higher risk. The important thing here is don’t lie about their existence! If you have a teen driver living at your house – when your agent runs their reports, more than likely that teen driver’s name will pop up.

Own a home–Most carriers will offer you a discount if you insure both your home AND auto with the same carrier. Don’t miss out on this one – ask your agent if you are getting the proper credits.

Effective Date– some insurance carriers will offer you a DISCOUNT if you don’t wait until the last minute to get a price from them. Typically its 10-15 days before your new policy’s effective date. Why? They feel people are more responsible if they are “taking care of business” sooner than later. Procrastinators beware!

Pay in full – Carriers love to get paid! If you can pay in full for the year, or ½ year – many carriers will give you a break. Some will also give you a discount for EFT (Electronic Funds Transfer). EFT is a great way to go – you will never be late on your payment and therefore will never get cancelled for non-payment. It is safe and secure so sign up today!

Yes the insurance world is changing – but that’s ok! This is another reason why working with a Trusted Choice Independent Agent is so critical. I can bet you that a 1-800 number isn’t going to cover all the bases as good as your local neighborhood agent will. Sometimes you just need a live body – and this is one of them!

Give us a call – 860-482-3506. You don’t have to tell us who your 5th cousin, 15 times removed is – but you might have to spill the beans on a few more useful facts about yourself!!

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