Why Do Insurance Agents Ask if You Are Currently Insured?

[mileena]

I notice most, if not all, insurance companies or agents ask if you are currently insured or who your previous insurance company was. why do they do this?

I think this raises your rate if they find out you have been driving without insurance. Can you just lie to them and say you have insurance currently? there is no way for them to check, right? The CLUE report will only list the insurance company you had if you have made claims or have had claims mad against you in the last 7 years, but it does not list any current insurer.

Also, if you simply do not have a car, and therefore, no insurance, does this count against you when you apply for a new policy?

Thanks!

 

[insuranceexec]

DUHHHHHHHHHH. They are asking for a recommendation.

 

[Mr. Bill]

You know, he has a point. Insurance companies are really, really stupid. That's how they make so much money. Obviously we have all missed the boat. If we were stupid, we would be rich, too.

Damn. I think I just explained Paris Hilton. Were my smart cells working? Maybe I should ask Al to share some of his Gentleman Jack?

 

[arnguy]

Actually, mileena, it's just to annoy the applicant.

 

[curly212]

I like to find out who your existing agent is so I can call him/her and talk bad things about you. Sometimes I just do it because I'm looking to charge that person more money. I also like to ask about sr-22's. I've found that these are the people I like to target. They're typically the people who like to milk the system.

 

[Ryansterlin]

Insurance agents/companies will ask about prior insurance because if you have been driving without insurance, you are considered a higher risk. Higher risks get charged more. If you lie and say you had insurance, the agent/company can require proof of prior insurance before they submit your app and/or bind coverage. I know some companies won't insure you if you've been without insurance for over 30 days. Obviously if you didn't own a car which is why there's no insurance, that doesn't count.

Also, if you've been driving without insurance for too long, the state may have suspended your drivers license, so you may want to double check your license is still valid.

 

[keith59]

Insurance agents/companies will ask about prior insurance because if you have been driving without insurance, you are considered a higher risk. Higher risks get charged more. If you lie and say you had insurance, the agent/company can require proof of prior insurance before they submit your app and/or bind coverage. I know some companies won't insure you if you've been without insurance for over 30 days. Obviously if you didn't own a car which is why there's no insurance, that doesn't count.

Also, if you've been driving without insurance for too long, the state may have suspended your drivers license, so you may want to double check your license is still valid.

Hello. very good question. The main reason why they are asking if you already have a provider is to know the things that they should be sharing to you. They want to know if you already have a grasp of idea about what you are getting yourself into. They also would like to know your current provider to explain to you the difference about theirs and your current provider's policy. They don't want to be beating around the bush and tell you over and over again something that you swear you already know.

 

[txnewbie]

Maybe they ask so that if you say "yes, but I'm not happy" or "I had XYZ but I wasn't happy"-their next question will be "who WAS your carrier" (because they DANG sure don't wanna offer you the same thing you just said you weren't happy with. ALSO, I think in Texas-you may have only ONE policy active at a time (for health). If you secure a new policy, you musst cancel the previous one within 30 days...(I think?)

 

[djs]

You should learn more about clue reports. They show your current insurance. Doesn't have anything to do with claims.

Now, if you have seen a clue report and it doesn't show the policy, carrier, vehicles, etc, then you just aren't seeing the full report.

Dan

 

[todd02]

To directly anwser your question: if don't have current insurance you are more of a risk in the companys eyes. If you lie you will get a rate increase. Large companies require proof scaned into their systems