While a certain pieces of information will be needed to generate an accurate car insurance quote, consumers should draw the line at sensitive data.
Online PR News – 09-September-2010 – – As more people go online to collect premium estimates from auto insurance companies, the amount of personal data being transferred across the Web also increases.
Although it would be nearly impossible to generate accurate auto insurance quotes without personal information whatsoever, a number of sites allow consumers to enter only minimal info in order to generate an accurate estimate. Sites that respect privacy will not ask for sensitive information like social security or driver’s license numbers but instead will simply ask for the data to which these numbers would give them access — general credit standing and driver record. Some shoppers may still feel that other types of required info are extraneous, but there is often a good reason that these sites ask for it.
For instance, the address where a car is most frequently garaged may strike the average online consumer as a piece of data with little relation to getting quoted for car insurance coverage, and he or she may not feel comfortable inputting it online. But the address where the automobile will normally be garaged actually plays an important role in determining rates. Insurance companies cut up the geographic areas they serve into smaller territories based on claims data — the frequency and severity of accident and theft claims — and use the average trends of the people in a given area to determine the risk level of motorists in those territories. While some might consider it unfair for insurers to assume that one person has a greater likelihood of filing claims simply because his or her neighbors have high claims frequencies, territorial statistics serve insurers well. According to a report filed by the Connecticut Office of Legislative Research in 2006, “studies have found where a person garages his [or her] vehicle is the most accurate prediction of loss.”
So, while an online insurance shopper might consider a quote-provider’s asking for address data to be an intrusion, providing such data will lead to a more accurate assessment of risk and in turn a much more accurate premium estimate. In any event, most online insurance comparison sites will prompt the consumer to enter in only a ZIP code, not a specific address.
To find out more about getting car insurance premium estimates with minimal info, shoppers can go to http://www.onlineautoinsurance.com/quotes/no-personal-information.htm where the price comparison process can begin.