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Texas Car Insurance Underwriting

In Texas, car insurance underwriting is part of the process when you want to insure your vehicle. The car insurance company in TX uses underwriting to determine the level of risk that any given driver presents. This determination is used by the insurance company to set premium rates.

By learning about how the car insurance underwriting process works in Texas, you may be able to get the coverage you need at a lower price.

When you are finished learning how the Texas auto insurance underwriting process works then be sure and use our free Texas car insurance quote comparison tool at the top of the page to search multiple insurance companies and find the Texas auto insurance policy that will best meet your needs.

Texas Car Insurance Underwriting: The Role Of The Underwriter 

A car insurance underwriter needs to be good with figures, since a good portion of their job deals with statistics. When you apply for insurance for your vehicle, the form will need to be reviewed by an underwriter at some point.

In order for an insurance company to be able to stay in business, it must collect enough in premiums to pay for any large claims made by its customers. If the company collects too little money, then it will not have the resources needed to pay claims, but it the premiums are set too high, then consumers will look elsewhere for coverage. Underwriters help with this delicate balancing act.

Texas Car Insurance Underwriting: Underwriters Determine Risk

When the insurance company agrees to provide coverage to a driver, it is agreeing to take on a certain amount of risk. The underwriter’s job is to determine the level of risk that an applicant presents to the insurance company. The higher the level of risk, the higher the premiums for the policy will be.

The underwriter will look at a number of factors to determine your level of risk to the company, including:

  1. Your Gender
  2. Your Marital Status
  3. The Make and Model of Vehicle You Drive
  4. Where You Live
  5. The Amount of Driving You Do
  6. The Type of Driving You Do (Business? Personal Use Only?)
  7. Whether You Are the Sole Driver or Share Use of Your Vehicle
  8. Driving Record of All Persons Who Drive the Vehicle
  9. Type of Coverage Requested
  10. Amount of the Deductible
  11. Value of the Vehicle
  12. Your Profession

Once the underwriter has finished his or her work in assessing your level of risk, the insurance company will decide whether it will agree to insure you and what your premiums for that coverage will be.

Texas Car Insurance Underwriting: Providing Additional Information to the Underwriter

If the underwriter assigned to your insurance application requests more information to process your application or update your file, do respond to these requests promptly. Failing to respond to requests for information about the number of miles you are driving annually or the type of driving that you do may mean that your premiums will be increased. Your insurance company may also cancel your policy.

If you have reported to your insurer that you are married, the company may ask to see a copy of your marriage certificate or a jointly filed income tax return. If you fail to provide this information, the insurer may rate you as being single, which will mean that your premiums will go up.

The insurance company’s underwriter is most likely to ask for further information shortly after your policy comes into effect. Be on the lookout for notices from your insurer in the first 30 days or so.

Once you have been dropped by an insurer, it will be more difficult for you to find insurance. Some companies may refuse to insure you at all, while others may offer you coverage, but only at a higher rate than you were paying in the past.

Texas Car Insurance Underwriting: If Your Policy Is Cancelled 

A person who feels that their insurance policy was cancelled unfairly has recourse. In this situation, they should contact the Texas Department of Insurance for assistance. Once a formal complaint has been filed, a representative will be assigned to review the case. Complaints can be filed online or submitted by mail or facsimile transmission. The Texas Department of Insurance web site provides forms in English and Spanish.

Find Texas Car Insurance Quotes Now!

You can find out more about Texas car insurance underwriting today and receive quotes from the top Texas auto insurance companies to find the best deal.

All you need to do is click on the tool at the top of this page to learn more. It’s easy and convenient.

Click on it now to get started finding Texas car insurance today!

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