Be Careful What You Ask Car Insurance Companies

It is not uncommon for drivers to have questions about car insurance. When you do, you either call or send your insurer an email for clarification. There is no harm in that, right? Actually, there may be depending on where you live. Insurers in some states consider the types of questions policyholders ask when calculating car insurance rates.

What You May Not Know

Similar to the way certain credit inquiries impact your credit score, your insurance rates may increase when you pose questions to your insurer. It seems ridiculous to think that a simple question can raise the alarm for an insurer. However, that is exactly what has been happening industry-wide for years. Insurers use all available information during risk assessment, including general questions you ask.

Conversations to Avoid

You can continue to receive affordable car insurance quotes by following a few basic suggestions. Only answer questions posed by the insurance agent. Offering additional information may give them reason to increase your rates. You should also avoid having the conversations about the following:

·         Hypothetical Situations - often the best way to share your concern is by using a "what if" scenario. However, insurers are using these hypothetical questions to determine how much risk you pose to them. Most people tend to give hypothetical examples that either they have already experienced or are likely to experience. Insurers use your hypothetical questions to justify rate increases.

·         Possible Claims - you may not be sure if you should or should not submit a claim for damage or a specific accident. Perhaps you simply want to know what the claim process is before you purchase a policy. Insurers consider your claim questions in context of your likelihood to actually submit a claim. In other words, insurers believe if you ask about claims, you will probably submit one at some point which makes you a higher risk for them.

·         Additional Coverage - if you ask your insurer about the cost to have fire or theft protection included on your existing policy, you can expect a rate increase. Drivers who worry about thefts may live or work in dangerous neighborhoods. Your insurer will happily sell you comprehensive coverage but will charge you higher rates than you would have received if you purchased the coverage without specifically mentioning theft or fire protection.

·         Changing Vehicles - drivers who ask their insurer about costs associated with a different vehicle generally experience rate increases at the time of renewal. Drivers who often change vehicles may be more prone to accidents, either with a stationary object or with another vehicle. These questions are red flags for insurers that you may submit claims more often than drivers who do not change vehicles as frequently.

Knowing what questions to avoid when talking with an insurer keeps your rates lower. You do not want to mention anything that might cause the insurer to question your risk level.

Texas Car Insurers

Drivers who live in Texas may not even know their rates can increase just by asking their insurers questions. While the state passed a law effective September 2013 that prevents insurers from penalizing homeowners with policies for asking questions, the law did not extend to car coverage. It has been perfectly legal in Texas for decades now for insurers to raise premiums based on hypothetical questions posed by policyholders. Unfortunately, it appears this will remain the case for the foreseeable future.

A customer inquiry is any type of communication with an insurer that is not related to a particular claim in process. The inquiry focuses on policy terms and conditions. According to the Texas Insurance Code, even asking about the claim filing process or whether your policy covers a particular loss is consider a customer inquiry. Insurers are permitted to use these inquiries to increase premiums.

Handling Car Insurance Quotes

You can avoid these potential pitfalls by using online car insurance quotes. Use a site like ours that allows you to get quotes from several major insurers for easy comparison. It only takes a few seconds to complete the zip form and receive qualified online car insurance quotes from insurers licensed to serve your community. When you find the policy you want to purchase, complete the application required by the insurer. Visit their website to find answers you may have so your inquiries do not result in higher rates.