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What the Auto Insurance Companies Know About You?
American values have always given top priority to the right toprivacy. But are you aware of the amount of information youunknowingly pass over to your insurance company, when you applyfor auto insurance. Most of this information ends up in databasecompanies who make profit out of selling information about you. Your credit is what most insurance company wants to know. Theyuse this credit data to decide about your auto insurance policypremiums. Use of this practice has expanded drastically becausethrough your credit information they get a clear picture aboutyour history with your previous auto insurer. Even before youapproaching them they have already placed you in a categorythrough which they will not end up in the loosing side. To befair, they precisely know what type of claim you are likely tomake and not to make and what is the best premium for you.Every auto insurance company scrutinizes your credit historyacquired from the database company and gives you a rank, ofwhich you are unaware of. The rank will categorize you underpreferred, standard or high-risk. Next they look is your paymenthistory. If you are a timely payer you will move towards thepreferred category. But if you have a bad history of paymentthen you move the opposite direction. This entire ranking, whichtakes place without your knowledge, is due to the informationyou have passed over to your earlier auto insurance company. Anodd activity the month before you buy your new auto insurancewill put you under the high-risk group. The odd activity mighteven stop an auto insurance company from selling you the policy. ChoicePoint and the Insurance Services Office (ISO) provide autoinsurance companies with all the necessary information theyneed. Your name, address, phone number, claims, credit report,criminal record if any, and the most curious aspect any autoinsurance company would like to hear, your driving history.ChoicePoint has a database called Comprehensive LossUnderwriting Exchange or CLUE. The information they gather fromyour credit history, gives you a rank. When you apply for autoinsurance, the company you applied asks for your rank and theyimmediately get the answer into what category you fit. The AllClaims databases maintained by ISO, mainly looks into fraud.Unusual or suspicious behavior in your credit history will benotified to the insurer. They also maintain a record about theclaims that have dragged on to courts.Apart from this top auto insurance companies also have their owndatabase. The government agencies of your state also have allthe necessary information. If you are curious to know about yourmotor vehicle report you can approach your state's department.TransUnion, Equifax, Experian are some of the companies who canprovide you with your credit history. The CLUE report ofChoicePoint is also available but you have to pay for it. If youhave any difference of opinion with the ISO's All Claims report.You can acquire a copy and dispute it. So, next time when you approach an auto insurance company keepit in mind that he knows a whole lot of things about you, whichyou are unaware of.
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