One thing you may need to know right from the start that some information may not be required to get auto insurance quotes. You may just want to know how much a policy is going to cost from a particular firm or a vehicle you are considering buying. You can get a quotation by providing your basic details with most companies. This is the stage you may be cautions and companies are aware of that. They don’t want to spook you away with too many details and questions.
However, the situation is different when you are buying or bought a policy. Your insurer will want to know your driving license number as well as the same for other drivers. They would also want to know your Vehicle Identification Number (VIN). This is the point to provide all the relevant information in relation to insuring a vehicle.
Why do they ask VIN? This is the number that is unique to your automobile. With this number companies can check the background of it. They can find out if it is involved in a serious accident from accident registration data center. They can also check that it is registered to your name. In many states you can only insure autos that you own. It is something to do with having insurable interest on the car.
Vehicle Identification Number includes many useful information about the automobile. Things like its make, model and year of manufacture is included there. Even a car is totally burned down, this number can tell the police and the insurers who it is belong to. This speeds up the process and reduces the costs of searching for stolen autos. Also, it reduces claim frauds in some ways. Companies spend fortune on falsely made claims and any help to reduce them will keep premiums low for everyone.
If you ever bought a used car you would know how important this number is to reduce fraud. You can actually get the history of a car you want to buy using this number. Maybe it is a good idea you physically check that this number on the car matches with the number on the auto log book. Some crooks can try to sell you a lemon by playing around this number.
Companies can save you a small fortune thanks to proper auto records. For example, a loss adjuster can determine if a damage you are claiming for is done in the accident that led to claim or it is done way before. Some people may want to get all the other repairs done as well and charge it to the company. But looking at the history a loss adjuster can see that this damage was done in a previous incident.
Also, companies can check if a car to be insured has ever been totaled. Some people buy salvaged automobiles, repair them and register again for driving. These cars are high risk since the company is not confident about the repairs after it was deemed beyond repair. So, they can quickly find out the true story and charge appropriate premium to insure it.