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Common Questions Asked by Car Insurance Companies

By Juhi Walia
17 August 2022, 2:49 PM

Choosing the best automobile insurance policy can occasionally be challenging, especially if you're insuring your vehicle for the first time. Even if there is a ton of material online, certain queries could be challenging for you to discover the answers to.

Additionally, insurance companies will ask you a few questions about your automobile and other personal information before providing the insurance coverage.

Here are a few frequently asked questions you should have ready when purchasing automobile insurance.

What is the Make and Model of Your Automobile, and When was it Made?

The most critical information that insurers need is your car's model, and the year it was manufactured. The model and manufacturing year are required to figure out how much your car will cost to insure.

The automobile model provides an estimate of the market worth, and the year of manufacturing aids in calculating the depreciation of the vehicle. The first and most important questions you need to address relate to these elements.

What is Your Cellphone Number and Vehicle Number?

Important information needed to issue an car insurance policy for the registered vehicle includes your car's registration number. The insurance coverage is only provided for registered vehicles. Your cellphone number is also crucial information, so insurers may contact you regarding alerts and other insurance-related matters.

What Do You Do with Your Car?

Commercial vehicles have a different insurance price than personal vehicles. Therefore, it is crucial to inform the insurance company about the purpose of the automobile. A business vehicle often has a higher insurance premium than a personal vehicle. Additionally, your claim may be denied if your car is used for purposes not permitted by the policy.

Where Do You Stay?

The location where your automobile was registered determines the premium rates. Generally speaking, urban dwellers may pay more than those who reside in rural areas.

In order to set the base rates, insurers consider the severity and quantity of claims in a certain location. Cities often have more crime, accidents, and traffic congestion, which leads to more claims. As a result, insurance premiums in urban regions are greater than in rural ones.

Has Your Current Coverage Expired?

To calculate the cost of your automobile insurance, insurers need to know whether or not your existing car policy has expired. Even if your expired car insurance, you may still renew it online.

Do You Have an Installed External CNG Kit?

The type of gasoline the car uses has a significant impact on how much insurance will cost. The insurance cost of a car with a compressed natural gas (CNG) kit fitted will be different from that of a vehicle with a gasoline or diesel engine. The CNG kit may incur an extra premium from the insurer.

Due to the greater maintenance and damage expenses associated with CNG kits, the insurance cost also rises.

During the Most Recent Policy Term, Did You File a Claim?

You get the No-Claim Bonus (NCB) if you don't make a claim while the policy is in effect. The renewal premium is reduced by using this discount. If you don't file claims for five years in a row, the discount might increase to 50%.

Is There a Security System Against Theft in Your Car?

Insurance companies are aware that you are taking the duty of protecting your automobile to prevent potential vehicle theft since your car has an anti-theft system fitted. Since their responsibility is lesser for a car with an anti-theft system, insurers can drop the premium amount for your automobile with this guarantee.

Read more - Advisor's Tip: How to file a Car Theft Claim?

Who is the Policy's Nominee?

Making a nomination serves to specify the person to whom the insurer must transfer the policy in the event of your passing. Additionally, if a claim settlement is already in progress, the insurer will work with the nominee to resolve it. A spouse, sibling, or child may be listed as a candidate for your automobile insurance.

What Insured Declared Value (IDV) Would You Want to Select?

The IDV is the car's estimated market value. The IDV for your car will be provided by the insurers when you purchase the insurance policy. You can choose to make the value higher or lower. Note that a higher IDV in car insurance will result in a higher premium, and a lower value will result in a lesser claim payout. Select the appropriate IDV to get the proper reimbursement during claim settlement.

Do You Want to Choose the Voluntarily Deductible?

A mandated deductible is a requirement for an automobile insurance policy. A certain fraction of the repair price is your responsibility during claim settlements. You can also pay extra out of pocket when settling car insurance claims. Although selecting a voluntary deductible can lower your premium, you will be required to pay more out of pocket when a claim is settled.


Car insurance companies need specific information to determine whether you qualify for coverage and, if so, at what cost. To obtain an accurate estimate, your response must be true and thorough. When the insurance company reviews your information as part of the underwriting process, your policy may be rejected, or your premium may change if you provide the inaccurate or missing information.

Read more -


1. Why do insurance providers inquire about several things before insuring my car?

To calculate the insurance premium or cost, insurers inquire about your automobile and personal information. Personal information is necessary in order to identify the owner of the car, issue alerts, and other communication.

2. What data do automobile insurance providers have access to?

When you provide insurers with your automobile and personal information, they can access your vehicle information from a centralised database. The model of your car and its year of production are among these specifics.

3. What information must I withhold from my auto insurance provider?

To facilitate claim settlements and prevent claim rejection, you should be completely honest about your automobile and prior insurance.

4. What aspects do insurance firms take into account?

  • Age
  • Driving history
  • Location
  • Gender
  • Insurance history
  • Make and model of the car

5. How do I pick the best automobile insurance?

  • Know what you need
  • Review the strategies
  • Inquire about the extras
  • Compare insurers/premiums
  • Verify the claim procedure
  • Learn the insurer's claim settlement ratio
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