Q. Why do insurance companies need my Social Security number?
A. There is a national data bank that is notified when a claim is paid. This enables companies to check past claim records before writing new policies. Most companies will not write insurance coverage without this information. This will also give them access to your credit records. Some companies discount your premiums with acceptable credit. This premium reduction can be quite significant.

Q Why do some companies who are insuring property need my driver's license number?
A. There is a significant correlation between alcohol usage, smoking and resulting fire losses. Also several negative incidents on a motor vehicle record can indicate patterns in other areas of life. Homeowner and other types of property coverage's also insure you for liability on or off premises. The cost of these claims can be as great as those paid for fire and wind losses.

Q. Why do we ask questions about animals if you want homeowners or apartment coverage?
A. Many companies won't write homeowners coverage if you have more than two horses. In that case you may need a different type of policy or a special endorsement. Some breeds of dogs present a problem, especially if it has a history of biting. In that case, or for some other animals such as snakes, the company may just attach an exclusion for liability.

Q. Why do I need an insurance inspection for my vehicles?
A. You may need this inspection for comprehensive and collision coverage. However if you have been with the same insurance company for four years and have continuously carried physical damage coverage for that period of time you may be exempt from the inspection. You also may be exempt if the car you buy has less than 100 miles or the car is over seven years old. Certain types of vehicles and even those over seven years old may require an inspection. If you don't qualify for an exemption you have five calendar days to have pictures taken, equipment noted and other information gathered by the agent or inspection station. If this is not done within the five days you will be notified that your coverage has been suspended.

Q. What is meant by replacement cost?
A. The replacement cost on the contents provision of a homeowners or apartment insurance policy means that for most losses the company will replace the items with new items with no deductions for depreciation. The old items will be replaced with new ones. In the case of an automobile loss some states allow a company to endorse your policy or write a different policy to replace the car with a new car. There may be an additional premium for this and there may be certain restrictions on the age of the car.

Q. Can unmarried couples be named owners of the same policy?
A. If the deed to the property is in both names most companies will issue the policy. If the couple has a home and auto package, chances are that the cars may be insured under the unmarried names which may allow for beneficial discounts.

Q. What are some things to be careful of with auto insurance bills?