Upon the purchase of an auto insurance policy, company underwriters receive and review applications in order to ensure policies are properly quoted and underwritten.
Many factors are reviewed for accuracy and if an error or information is improperly listed, it can cause a policy up rate resulting in higher premiums for the insured.
Since many details are used for the purpose of determining rates, a change or correction in factors such as zip code, driving record info, marital status, gender, vehicle details, vehicle use among others, will cause an immediate change in premium or even cancellation.
For example, when an underwriter receives an application, they verify driving record history to ensure accuracy and any unlisted violations will result in an increase in price. With today’s technology, a lot of rating factors are reviewed at point of sale with automated software which immediately verifies such factors.
There are few items that may require an insured’s attention when a policy is underwritten. Suppose a driver was listed as married, a company may request proof of marriage such as a certificate or proof that taxes were filed jointly to prove marriage. If proof is not received within the allowed time, an insured can be rated as single which may cause the rates to increase.
It is very important to reply to underwriting request such as questionnaires on annual mileage, vehicle use, or any other notice because failing to respond may cause additional premium or even worse, the cancellation of your policy.
Usually within the first month of a policy purchase is the most important time to look out for underwriting notices. Sometimes companies will even request copies of vehicle registrations or other documents for their review.
If you feel you were cancelled or received a premium increase for unfair reasons, you may always contact your state department of insurance to file complaints and have a representative review your case.
If you are unsatisfied with your carrier for any reason, you should consider other carriers who will better fit your needs. OnlineAutoInsurance.com helps consumers find the right insurer by allowing them to compare online auto insurance quotes from multiple leading companies with one simple process with no obligations whatsoever.
