Q: What kinds of questions should I be expected to answer when I am applying for an insurance policy? Why do insurers need so much information?
A: When you apply for an insurance policy, you will be asked a number of questions. For example, the agent might ask your name, age, gender, address, etc. In addition, you will be asked a number of other questions which will be used to determine how likely you are to make a claim.

When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, it will want to know about the person's previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured.

Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. In order to determine which program you qualify for, an insurance company needs basic information about you.

In addition to your age, gender and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact, and someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work and drives only on weekends.

Personal information such as your drivers license number and social security number may be necessary to complete an accurate quote. Most insurance companies now verify your claims history, driving record and credit score prior to providing the best available quote for your particular situation. This information is kept confidential and is not shared with other people.

The credit score is a number devised by the insurance industry which takes into account your past payment history, current indebtedness and other less significant factors. Lower scores can limit the availability of competitively priced insurance coverage as it is a statistical indicator of a greater potential for claims frequency and severity.

Q: What are the advantages to using an agent to purchase insurance?
A: By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. A local, independent agent is able to deliver quality insurance with competitive pricing and local, personalized service.