Auto Insurance Companies: What They Already Know About You

By Author: Elle Perkins
Total Articles: 36
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The Americans have always attached the highest priority to the right to privacy. But are you aware of the amount of information that you transmit to the insurance company when applying for auto insurance? Much of this information is reflected in the database of companies that do business with the sale of information about you.

Your credit is what auto insurance companies largely know about you. They use data from this appropriation to decide the price of auto insurance premiums. The use of this practice has increased dramatically, thanks to your credit information that has a clear vision about your own history with a previous auto insurance provider. Even before you go to them they have already placed you in a category that does not keep them at a losing party. To be fair, they know exactly what kind of claim they can do and not do and what is the best premium to offer you.

Each auto insurance company does an in-depth analysis of your credit history drawn from the database of the company and provides a range of information about you. The range is classified as preferred, standard or high-risk. If you are ...
... a paying client, they will move you toward the preferred category. But if you have a poor payment history you will definitely be moved to the other direction. All of this ranking, which is carried out without the knowledge of policyholders, is due to the information they have passed along with the auto insurance company representatives. A strange activity in the months prior to the purchase of your new car, the auto insurance company will put you under the high-risk group. The strange activity could even prevent the insurance company automobile sales policy.

The Insurance Services Office (ISO) together with the other auto insurance companies provides all the necessary information they need. Your name, address, claims, telephone number, criminal record if any, credit report, and any of your records in the society that the auto insurance company wants to hear-- like your driving history. The information contained in your credit history, gives great value. When you apply for auto insurance, the company asks for your rank and applies it immediately to whatever category they deem you belong. All databases maintained by the claims ISO is mainly in the fraud list and suspicious credit behavior will be reported to the auto insurance company. Also, they keep track on the claims that have been dragged through the courts.

Apart from that database, several auto insurance companies also have cars database. Government agencies also have their state's all necessary information. If you are curious about the report you can approach your state department. Equifax, TransUnion, Experian are some companies that can supply your credit history. CLUE report ChoicePoint is also available, but you have to pay for it. If you have differences in the data in your claims report, you may opt to buy a copy and settle the controversy.

So the next time you come to an auto insurance company keep in mind that he knows a lot about you that you may have not realized.
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