Part of getting insurance is undergoing a process called underwriting. This process is basically where risk is assessed so the insurance company can determine what rate to charge you. During this process, you have no control over what information may come up or what the underwriters may discover. However, you still have a right to understand how the basic process works. This will help you as you look for insurance using a service like underwriting.com.
Gathering Identifying Information
The first part of the process will be where you are directly involved. You will be required to provide the insurance company or the company giving you a quote, like Ace Underwriting Group, personal information that will then be used to do an unwriting investigation. The information you will have to provide depends on what type of insurance you are getting. For auto insurance, for example, you would provide your name, driver’s license number, vehicle information and social security number. If you were getting home insurance, you would provide information about your home instead of your vehicle. It is important to make sure that you give them accurate information because any inaccurate information can slow down the underwriting process.
Gathering of Additional Information
The underwriting company will then take the information provided by your insurance company or a company like underwriting.com and use it to gather some additional information. Depending on what type of insurance you are getting, the company will likely look into your credit history, driving record, vehicle history, property information, health records and past insurance records. This process may take some time because underwriters want to gather the most accurate and complete information they possibly can.
After all the information has been gathered, the underwriter will then analyze the information. They will be looking for indications that you could be risky to insure. If you are getting auto insurance, for example, the underwriter will be concerned with any past violations or accidents. If he or she finds that you have had a history of violations or accidents, then they will mark you as an increased risk because you will be likely to continue with this same behavior in the future and such behavior may cost the insurance company money.
During the analysis of information, the underwriter may also compare you to others in your similar demographic group. Again, this may vary due to the type of insurance you are getting. For example, if you are getting auto insurance, they may compare you to others who drive the same vehicle or who are in the same age group. For home insurance, they may compare you to others living in the same area or with homes the same value as yours. This comparison can help them to further assign the amount of risk based on the insurance of others who are similar to you.
The insurance underwriting process is necessary for insurance companies to remain competitive and to maintain profits. It also helps to keep the system fair and allow you to shop around for the best rates, like at underwriting.com.