Online Auto Insurance: "Premium Leakage" Report Emphasizes Need to Get Policy Details Correct
Los Angeles, CA, November 07, 2011 --(PR.com)-- A new report from Quality Planning that says incorrect information about their customers cost automobile insurers more than $15 billion last year highlights the importance of getting policy details right when buying coverage, according to Online Auto Insurance (OAI).
Private vehicle insurers made more than $164 billion in premiums in 2010, but mistakes such as improperly reported mileage and undeclared drivers cost companies nearly 10 cents on every dollar earned, the report from the data verification firm states.
The study doesn’t discuss how many errors result in policyholders’ paying more, but OAI advises consumers to make sure their paperwork is in order.
Although you can get an insurance quote without personal info required early in the shopping process, when you’re actually buying a new auto policy, the coverage provider will typically ask more specific questions.
These will include what make and model of vehicles you own, how many miles a year you drive, who will be in the driver’s seat and plenty of other questions that will help them determine price. Agents will likely ask how old every licensed driver in the household is, where you live and for the driving record of everyone who may take the car out for a spin. In most states, they may even ask for information that will allow them to research your credit.
Companies may also want your Vehicle Identification Number (VIN) and to know about any safety features on your vehicle, such as air bags, anti-lock brakes and devices meant to prevent theft.
It is important to answer correctly, because some of this information may make you eligible or ineligible for discounts and because not doing so is against the law. Insurers are also required to be above board in their dealings with policyholders, and regulators in every state oversee those businesses to make sure they are fair to customers.
Source: http://insurance.ca.gov/0500-about-us/0100-cdi-introduction/
According to the Quality Planning report, the policy area that led to the greatest losses was that of customers inaccurately reporting the number of miles they drive. That alone cost insurers an estimated $3 billion in 2010.
Also costly were drivers who were not included on policies but drove the insured vehicles anyway, in addition to inaccuracies regarding driver experience, age and marital status.
To learn more about this and other coverage issues, readers can go to http://www.onlineautoinsurance.com/quotes/no-personal-info/ where they will find informative resource pages and a rate-comparison generator that can quickly evaluate their coverage options.
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Private vehicle insurers made more than $164 billion in premiums in 2010, but mistakes such as improperly reported mileage and undeclared drivers cost companies nearly 10 cents on every dollar earned, the report from the data verification firm states.
The study doesn’t discuss how many errors result in policyholders’ paying more, but OAI advises consumers to make sure their paperwork is in order.
Although you can get an insurance quote without personal info required early in the shopping process, when you’re actually buying a new auto policy, the coverage provider will typically ask more specific questions.
These will include what make and model of vehicles you own, how many miles a year you drive, who will be in the driver’s seat and plenty of other questions that will help them determine price. Agents will likely ask how old every licensed driver in the household is, where you live and for the driving record of everyone who may take the car out for a spin. In most states, they may even ask for information that will allow them to research your credit.
Companies may also want your Vehicle Identification Number (VIN) and to know about any safety features on your vehicle, such as air bags, anti-lock brakes and devices meant to prevent theft.
It is important to answer correctly, because some of this information may make you eligible or ineligible for discounts and because not doing so is against the law. Insurers are also required to be above board in their dealings with policyholders, and regulators in every state oversee those businesses to make sure they are fair to customers.
Source: http://insurance.ca.gov/0500-about-us/0100-cdi-introduction/
According to the Quality Planning report, the policy area that led to the greatest losses was that of customers inaccurately reporting the number of miles they drive. That alone cost insurers an estimated $3 billion in 2010.
Also costly were drivers who were not included on policies but drove the insured vehicles anyway, in addition to inaccuracies regarding driver experience, age and marital status.
To learn more about this and other coverage issues, readers can go to http://www.onlineautoinsurance.com/quotes/no-personal-info/ where they will find informative resource pages and a rate-comparison generator that can quickly evaluate their coverage options.
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Contact
Online Auto Insurance
Gregor McGavin
909-784-2475
http://www.onlineautoinsurance.com/
Gregor McGavin
909-784-2475
http://www.onlineautoinsurance.com/
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